Category: Blog

Cash – Total Liquid Assets of U.S. Nonfinancial Corporates The U.S. corporate cash pile grew to US$7 trillion in Q3 2021. Image: BofA Research Investment Committee

Wage Inflation – U.S. Average Hourly Earnings Expectations U.S. average hourly earnings rose more than expected in December. Image: BofA Global Investment Strategy

Coronavirus – Ratio Covid Deaths to Cases in South Africa One reason to be optimistic about the Omicron variant is that the ratio of Covid deaths to cases in South Africa has dropped significantly. Image: BofA Global Research

Percent of Time the S&P 500 Has Risen during Economic Expansions Economic expansions tend to be bullish for the S&P 500. Image: Truist

Valuations – Top 15% Most Expensive Stocks / S&P 500 Last year has been challenging for the top 15% most expensive stocks. Image: Morgan Stanley Research

30-Year U.S. Bond Total Return Minus S&P 500 Total Return Will the S&P 500 continue to outperform U.S. bonds this year? Image: BofA Global Investment Strategy

ISM Manufacturing Index and ISM Prices Paid Index (Leading Indicator) The ISM Prices Paid Index tends to lead the ISM Manufacturing Index by 12 months, suggesting a fall of the ISM Manufacturing Index in 1H22. Image: Morgan Stanley Research

S&P 500 Index Returns Under a Higher 10-Year Yield Historically, higher rates tend to be bullish for the S&P 500. Image: LPL Research

S&P 500 One-Year Drawdown Probability When Valuations Are High Is the S&P 500 poised for a large drawdown at some point this year? Image: Goldman Sachs Global Investment Research

Stocks – S&P 500 Technology/Dow Jones and NASDAQ 100/Dow Jones Are tech stocks about to burst again like the dotcom bubble? Image: Alpine Macro

U.S. 10Y-2Y Yield Curve and Fed Funds Target Rate As the bond market has discounted the Fed’s hawkish policy stance, the U.S. yield curve may not flatten if growth remains resilient in 2022. Image: Morgan Stanley Wealth Management