European Stocks – MSCI Europe Index Two-Year Forward P/E Premium to MSCI All Country Worl Index European stocks remain cheap relative to their global peers. Image: Morgan Stanley Wealth Management
Current Value Cycle vs. Historic Value Cycles Historically, Value cycle tends to last 33 months and Value tends to outperform Growth by about 60% on average. Image: BofA US Equity & Quant Strategy
Growth vs. Value – Based Relative Median Price to Forward Earnings Ratio Growth continues to trade above its historical average vs. Value. Image: BofA US Equity & Quant Strategy
S&P 500 and Investment Grade Bonds The divergence between investment grade bonds and the S&P 500 tends to be a bearish signal for the S&P 500. Image: BofA Global Research
S&P 500 3-Month Implied Volatility and U.S. 10-Year 3-Month Implied Volatility The volatility gap between U.S. equity and U.S. rates has now closed. Image: Goldman Sachs Global Investment Research
Valuation – Fed Assets vs. S&P 500 Fwd P/E Fed assets tend to push the valuation of the S&P 500 higher. Image: Lohman Econometrics
Valuation of the S&P 500 and the Top 5 Stocks Relative to Interest Rates The earnings yield gap for the top 5 stocks is 191 bp, just above the 40-year average of 144 bp. Image: Goldman Sachs Global Investment Research
QoQ Cash and Securities Growth For the first time since the coronavirus pandemic, cash fell QoQ in the first quarter of 2021. Image: BofA Global Research
Gold Minus Oil Annual Net Return The cyclical oil outperformance vs. gold is the largest since 1978. Image: BofA Global Investment Strategy
Advanced Economies Debt/GDP and Advanced Economies Long-Term Rate Will rising debt lead to higher inflation and higher yields? Image: BofA Global Research
24-Month Fwd P/E Discount of World Cyclicals vs. Defensives World Cyclicals are still trading at a discount vs. Defensives. Image: Goldman Sachs Global Investment Research