S&P 500 Operating Margin After the COVID-19 pandemic, the operating margins of companies in the S&P 500 have returned to a state of normalcy, leading to a positive trend of improved profitability and cash flows for these companies. Image: Morgan Stanley Wealth Management
Cumulative Inflows Across Asset Classes Cash is the flow winner in 2023. Will it serve as the driving force behind the bull markets of 2024? Image: BofA Global Investment Strategy
Cumulative Global Fund Flows Investors are showing less enthusiasm for equity funds. In contrast, flows into global bond and cash funds remain very strong, reflecting a prevailing investor sentiment towards these two asset classes. Image: Goldman Sachs Global Investment Research
Hard/Soft/No Landing Pricing Across Asset Classes Investors may allocate cash to bonds in hard landing, a combination of stocks and credit in soft landing, commodities in no landing. Image: BofA Global Investment Strategy
S&P 500 vs. Top 10 Investors can benefit from the currently wide valuation dispersion by focusing on low beta stocks that have stable cash flows and strong balance sheets. Image: J.P. Morgan Asset Management
Seasonality – S&P 500 % Change As cash and T-bills currently offer an attractive yield, should investors “sell in May and go away” this year? Image: TS Lombard
60% Stock/40% Bond Portfolio Yield Less Six-Month U.S. Treasury Bill Yield The traditional 60/40 portfolio looks vulnerable. Is cash an attractive alternative? Image: Morgan Stanley Wealth Management
S&P 500 NTM EPS Yield Gap vs. 6-Month T-Bill Yields Cash is becoming an attractive option for investors. Image: Goldman Sachs Global Investment Research
Money Market Funds Assets as a % of Global Equity Market Capitalization Cash has been rising in the last few months but remains low as a % of global equity market capitalization. Image: BofA Global Investment Strategy
Cross-Asset Valuation for the U.S. On an absolute basis, equities look expensive by historical standards, but relative valuations appear attractive, as free cash flow yield and ERP look cheap. Image: Goldman Sachs Global Investment Research
Deflation Assets vs. Inflation Assets Is the 40-year bull market in bonds over? Deflation Assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield.Inflation Assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy