Sentiment – U.S. Dollar (USD) and Euro (EUR) The EU recovery fund provides more support for the euro. But is the reign of the U.S. dollar as the world’s reserve currency under threat? Image: BofA Global Research FX and Rates Sentiment Survey
Utility Valuation Composite vs. S&P 500 Could utilities outperform the S&P 500? Image: MarketDesk Research
Dividend Discount Model (DDM) Implied Equity Risk Premium (ERP) Goldman Sachs expects the equity risk premium to be lower moving forward, as the macro backdrop strengthens. Image: Goldman Sachs Global Investment Research
U.S. Personal Saving Rate Since 1959 Precautionary saving could weigh down on consumption. Image: Deutsche Bank
Percentage of Countries with Manufacturing PMIs Above 50 and 45 Manufacturing PMIs suggest that the worst is over in most countries. Image: Morgan Stanley Wealth Management
China vs. USA The number of Chinese companies in the Fortune Global 500 now exceeds that of the United States. Image: BofA Global Investment Strategy
Utilities Dividend Yield Less 10-Year U.S. Treasury Yield Goldman Sachs upgraded utilities to outperform, as the utilities dividend yield is relatively high compared to the 10-year U.S. Treasury yield. Image: Goldman Sachs Global Investment Research
Performance – Industrials vs. S&P 500 and Global Current Activity Indicator (CAI) Goldman Sachs upgraded industrials to outperform, as global economic growth is improving. Image: Goldman Sachs Global Investment Research
Valuation – Energy Sector Returns vs. Long-Term Oil Prices Is the energy sector a relative bargain? Is the energy sector a relative bargain? Goldman Sachs is still “underweight” energy stocks. Image: Goldman Sachs Global Investment Research
Gap Between S&P 500 Earnings Yield and U.S. Treasury Yield This chart suggests that the S&P 500 looks attractive relative to bonds, as the spread between the S&P 500 earnings yield and the U.S. 10-year Treasury yield is 368bps. Image: Goldman Sachs Global Investment Research
Performance – Information Technology vs. S&P 500 and Russell 1000 Growth vs. Value Trees don’t grow to the sky, but so far, tech is the darling of the market. Image: Goldman Sachs Global Investment Research