Category: Blog

Valuation and Inflation Investors in equities should fear too much inflation and deflation, as the sweet spot for inflation is about 2% per year. Image: Fidelity Investments

Sentiment – VIX and U.S. Equity Put/Call Ratio The divergence between the VIX and the put/call ratio could suggest a market susceptible to a downside shock. Image: Morgan Stanley Wealth Management

High Beta Relative to Low Volatility and Growth vs. Value The 2020 peak for Growth vs. Value does not equal the 2000 peak. Image: BofA Global Research Click the Image to Enlarge  

Interest Rate Volatility – U.S. 10-Year Treasury Yields Since the start of the COVID-19 crisis, daily percentage changes in the 10-year Treasury yield remain above historical norms. Image: LPL Research

Bubble Valuations – S&P 500 Index and S&P 500 Information Technology Sector GICS Level 1 Index (Adjusted Price/Sales Ratio) The U.S. stock market looks expensive by historical standards. Is the price-to-sales ratio worrisome? Image: Bloomberg

U.S. S&P 500 Comp Under Different Inflation/Disinflation Environments Investors should not ignore the effect that inflation can have on equities. Image: Gavekal, Macrobond

Personal Saving Rate and U.S. Stock Market Could the U.S. stock market see upside after the next stimulus is passed? Image: BofA Global Research

2-Year Fed Funds Expectations vs. U.S. 10-Year Treasury Yields There is a positive correlation between the change in Fed funds expectations and the change in U.S. 10-year Treasury yields. Image: BofA Global Research

China Imports of Semiconductor Manufacturing Equipment by Country China is a net importer of semiconductors and depends heavily on manufacturers from the U.S. and its allies. Image: Gavekal, Macrobond

Markets – U.S. Rate Moves Over the recent months, U.S. rate moves have generally been “healthy”. Image: BofA Global Research

U.S. Jobs – Initial and Continued Claims Initial and continued claims remain elevated, suggesting that the road to recovery is a long journey. Image: BofA Global Research