MSCI World Sector/Style Valuations Elevated P/E ratios in most MSCI World sectors—when compared to historical averages—indicate strong investor optimism fueled by positive earnings expectations and favorable macroeconomic conditions. Image: Goldman Sachs Global Investment Research
Indexed Return of Cyclicals vs. Defensives and Consensus Forward 4-Quarter U.S. GDP Growth The relative performance of cyclicals compared to defensives reflects market expectations of substantial real U.S. GDP growth. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Revision Breadth The S&P 500 earnings revision breadth soaring highlights broad-based optimism, stronger-than-expected earnings results, and upward revisions pushing the index to record levels. Image: Goldman Sachs Global Investment Research
Valuations – Spread of S&P 500 Minus S&P 500 Equal Weight The significant valuation gaps between the cap-weighted and equal-weighted S&P 500 result from the high valuations and growth expectations of large companies, which emphasize market concentration and investment risks. Image: Bloomberg
S&P 500 Forward Earnings Estimates The earnings fundamentals for the S&P 500 provide a solid foundation for a cautiously optimistic market outlook heading into 2026, with accelerating growth expected to drive further gains in equities. Image: Real Investment Advice
Typical Path of S&P 500 Bottom-Up Consensus EPS Estimate While positive earnings revisions have been strong recently, this momentum is likely to slow, though it probably won’t fall below the usual historical trend of downward revisions. Image: Goldman Sachs Global Investment Research
Deviation of Earnings Above/Below Long Term Growth Trend The unusually high divergence of current earnings from their long-term growth trend often precedes significant market corrections or reversals, suggesting that investors face elevated risks despite prevailing optimism. Image: Real Investment Advice
MOVE Index and Discretionary Investors Equity Positioning Over the past few years, discretionary positioning has exhibited a strong inverse correlation with rates volatility, though this pattern can fluctuate based on market conditions and investor behavior. Image: Deutsche Bank Asset Allocation
Gold – Global Central Bank Holdings Central bank gold demand cycles respond to global economic and political factors. Recently, demand has increased amid financial instability, currency trust concerns, inflation, sanctions, and geopolitical conflicts. Image: Goldman Sachs Global Investment Research
S&P 500 EPS Growth Analysts project 7% year-over-year earnings growth for the S&P 500 in both Q3 and Q4 of 2025. Image: Goldman Sachs Global Investment Research
Weekly Bond Fund Flows Bond funds continue to attract substantial inflows, remaining appealing investment vehicles amid inflation control efforts, modest economic growth, and uncertain interest rate trajectories. Image: Deutsche Bank Asset Allocation