U.S. Equities and The World: Earnings Growth vs. Multiple Expansion Since the 2009 low, the strong performance of the U.S. markets comes from earnings growth (73%) and multiple expansion (27%). You may also like “S&P 500 Return: Earnings Growth vs. Multiple Expansion.” Image: Goldman Sachs Global Investment Research
The GS Financial Conditions Index and The Target Fed Funds Rate The Goldman Sachs Financial Conditions Index is not at its lowest level and the current levels are quite similar than previous first rate cuts. Image: Bianco Research
Hyperscalers Realized Return on Invested Capital Hyperscalers’ ROIC has dropped from 40% to 25%. But the bigger concern is that the AI buildout may be less profitable than reported, with shadow debt and circular financing emerging beneath the surface. Image: Goldman Sachs Global Investment Research
S&P 500 Low Volatility Stocks Are the Best Performing Asset YTD This chart shows that S&P 500 low volatility stocks are the best performing asset year-to-date (outside of GSCI energy). Actually, high-quality stocks are a good way to protect against a weak economy. Image: Goldman Sachs Global Investment Research
Market Share of Algorithmic Trading by Asset Class Algorithmic trading has grown across asset classes, particularly in equities. Image: Goldman Sachs Global Investment Research
Is the U.S. Expansion Waning? Despite strong US GDP growth in April 2019, this chart shows that U.S. growth is not bouncing back in this late business cycle. Image: Goldman Sachs Investment Research
FED, ECB & BoJ Balance Sheets as Percent of GDP (BoJ leading 10 years) Is this chart the “Japanification” of the world? Image: In Gold We Trust-Report
Real Estate Continues to Lead Stocks as Americans’ Choice for Best Long-Term Investment Americans think that real estate is the best investment vehicle compared to other investments, such as stocks, bonds or gold. Image: Gallup
More than 200 Years of U.S. Interest Rates in One Chart This long term chart covers more than two centuries of US interest rates (yield on the U.S. 10-year Treasury). Image: Goldman Sachs Global Investment Research Click the Image to Enlarge
S&P 500 1-Month Volatility History Since 1928 and VIX Since 1990 The stock market crash of 1929, the Black Monday of 1987 and the global financial crisis in 2008 were the most extreme events. Image: Goldman Sachs Global Investment Research
What Will Cause The Next Recession – Jim O’Neill On The World Economy What will cause the next recession when “Wall Street indexes predicted nine out of the last five recessions! and its mistakes were beauties.” — Paul Samuelson, 1966 When will the next recession happen? Jim O’Neill, former chief economist at Goldman Sachs, says…