Percent of S&P 500 Market Capitalization Held by the Five Largest Stocks This chart highlights the current level of concentration in the five largest stocks. Image: BofA Research Investment Committee
U.S. 10-Year Treasury Real Rate and S&P 500 Information Technology Sector Forward Price/Earnings Ratio The technology sector strength hinges on real rates. Image: Morgan Stanley Wealth Management
U.S. Dollar vs. Commodities A weaker U.S. dollar tends to boost commodities. Image: Morgan Stanley Wealth Management
G10 10-Year Yield Forecasts Before the vaccine news, Goldman Sachs forecasted the U.S. 10-year Treasury yield at 0.75% by the end of 2020 and 1.30% by the end of 2021. Image: Goldman Sachs Global Investment Research
FAAMG Stocks After the U.S. Election FAAMG stocks continue to do well in this market. Image: Financial Times
Cyclicals – U.S. 10-Year Treasury Yield and Financials vs. S&P 500 A vaccine for COVID-19 may be the most powerful catalyst for “distressed cyclicals.” Image: BofA Global Investment Strategy
Euro to U.S. Dollar (EUR/USD) and U.S. Presidential Elections Since 2000, the EUR/USD tends to rise after the U.S. presidential election. Image: Nordea and Macrobond
Gold Minus Oil Annual Net Return This year saw the biggest gold outperformance vs. oil since 1980. Image: BofA Global Investment Strategy
Valuation – S&P 500, Nasdaq 100, S&P 400 MidCaps and S&P 600 SmallCaps without Quantitative Easing (QE) Chart suggesting that without QE, the S&P 500 should be around 1,800 and the Nasdaq 100 around 5,000. Image: Societe Generale Cross Asset Research
VIX (Volatility Index) vs. S&P 500 Valuation The S&P 500’s valuation tends to be higher when the VIX declines sharply. Image: Jeroen Blokland
Bitcoin – Price in U.S. Dollars Bitcoin is having a good year so far. Image: Financial Times