Risk Appetite in Flows After Adjusting for Seasonality and Cyclical Growth Market sentiment is currently robust, with risk appetite in flows at the 85th percentile, falling short of extreme levels. Image: Deutsche Bank Asset Allocation
S&P 500 EPS and Index Level Forecasts Over time, stock prices are driven by earnings. According to Goldman Sachs, the S&P 500 is expected to see earnings per share growth of 8% in 2024 and 6% in 2025. Image: Goldman Sachs Global Investment Research
Sell Side Indicator (Average Recommended Equity Allocation by Wall Street Strategists) The Sell Side Indicator, which tracks Wall Street strategists’ equity allocation recommendations, remains in neutral territory, with no sell signal triggered. Image: BofA Global Research
U.S. Tech Valuations – Forward PE Ratio U.S. tech sector’s valuations have surpassed post-COVID highs. However, historical precedent suggests that these high valuations may be challenging to sustain going forward. Image: Morgan Stanley Wealth Management
S&P 500 Price Target Citing robust corporate earnings, Deutsche Bank has set a year-end 2024 target of 5,500 for the S&P 500 index. Image: Deutsche Bank
S&P 500 Performance After New All-Time Highs On All Five Days of the Week When the S&P 500 hits new all-time highs on all five days of the week, historical data suggests a bullish outlook over the next 12 months, with a median return of 8.7% since 1950. Image: Carson Investment Research
MSCI World Value vs. Growth Given the current market dynamics, will the outperformance of growth stocks over value stocks be reversed in the future, with value stocks potentially taking the lead? Image: Goldman Sachs Global Investment Research
U.S. 10-Year Treasury Yield The 10-year U.S. Treasury yield has been in a secular bear market since February 2022, and it could potentially approach 6% in the coming years. Image: BofA Global Research
Performance – S&P 500 Equal Weighted / S&P 500 Market Cap Weighted The poor performance of the S&P 500 Equal Weight Index relative to the S&P 500 can be seen as an indication of the lack of broad participation in the market. Image: The Daily Shot
Real S&P 500 vs. Valuations (CAPE) The timing of your investment journey can significantly impact your future outcomes. Even with the Fed’s interventions, recovering from a bear market can take an extended period after speculative “booms.” Image: Real Investment Advice
ISM Manufacturing PMI and Global Stocks vs. Government Bonds In a potential shift from a “no” to a “hard” landing scenario, government bonds may outperform due to increased risk aversion, interest rate cuts, lower inflation expectations, and their historical performance during economic downturns. Image: BofA Global Investment Strategy