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
Inflows as % of Assets Under Management (AUM) Cash, gold and tech are the largest inflows this year, amid the coronavirus pandemic. Image: BofA Global Investment Strategy
Equity Allocation Investors allocation to equities is high. But with cash and bonds offering little or no yield, investors are likely to rotate cash into stocks. Image: Goldman Sachs Global Investment Research
U.S. Fund Flows (YTD Cumulative) U.S. equity funds have seen inflows over the past few weeks, but there is still a lot of cash on the sideline. 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
U.S. Personal Saving Rate The personal savings rate soared to 33% in April, as coronavirus causing Americans to accumulate cash. Image: CNBC
Inflation Assets vs. Deflation Assets The leadership remains deflationary, and the laggards remain inflationary. 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
U.S. Household and Personal Saving Rate Americans are accumulating cash, as savings rate hits its highest level since 1981. The Daily Shot – The Wall Street Journal
Fund Flows – Equity, Bonds and Money Market Funds Investors frightened by the coronavirus pandemic, put a record amount of cash into money market funds. Image: Goldman Sachs Global Investment Research
Record Money Market Fund Inflows Money market funds get record inflow, as investors flood into the safety of cash. Image: BofA Global Investment Strategy