Category: Blog

S&P 500 Monthly Returns Since 1985 More gains to come in Q4? Image: Goldman Sachs Global Investment Research

Cyclicals vs. Defensives and Inflation 5y/5y Forward Cyclicals tend to outperform when inflation expectations rise. Image: Goldman Sachs Global Investment Research

Performance – S&P 1500 Sub-Industry Groups Will the COVID-19 “Staying In” continue to outperform the COVID-19 “Going Out?” Image: Arbor Research & Trading LLC

VIX Curve and U.S. Election Investors expect more volatility ahead of the U.S. presidential election. Image: Financial Times

Sensitivity of S&P 500 Sector Excess Returns to 10-Year Breakeven Inflation Financials, industrials, materials and energy sectors outperform most when inflation rises. Image: Goldman Sachs Global Investment Research

U.S. Money Market Fund Holdings According to J.P. Morgan, the wall of cash may remain very high indefinitely, as defensive assets are delivering their weakest performance. Image: J.P. Morgan

Valuation – Average Forward P/E in Core PCE Inflation Ranges Since 1976​ Historically, inflation generally had a negative impact on valuations when core PCE approached 2%, in the anticipation of rate hikes. Image: Goldman Sachs Global Investment Research

Ownership of U.S. Corporate Bonds Around 28% of U.S. corporate bonds are held by non-U.S. investors. Image: BofA

Consumer Demand for Gold China is the world’s largest consumer of gold, and India is the second largest consumer of gold. Image: Financial Times

Gold Inflows Since 2018 More retail investors are turning to gold investment. Image: BofA Global Research

Inflation – S&P 500 LTM Sales Growth vs. Core CPI Since 1970 Rising inflation tends to boost S&P 500 earnings. According to Goldman Sachs, a 100bp increase in average annual core CPI would lift the S&P 500 EPS to $170 in 2021. Image: Goldman Sachs Global Investment Research