Search Results for: quant

Estimated S&P 500 2022 Earnings Impact Based on 25% Tax Rate Have markets priced in Biden’s tax hikes? Image: BofA US Equity & Quant Strategy

S&P 500 Financials Relative Performance vs. S&P 500 Will financials outperform the S&P 500 over the next few years? Image: BofA US Equity & Quant Strategy

Value vs. Growth – Active Managers’ Relative Exposure in Low P/FCF vs. High Long-Term Growth Despite the rally in Value, active managers are still ~30% underweight Value vs. Growth. Image: BofA US Equity & Quant Strategy

Valuation – FAANG and S&P 500 Ex-FAANG Price-To-Sales Ratios Ultra-low rates tend to push price-to-sales ratios higher. Image: BofA US Equity & Quant Strategy

Earnings Growth – S&P 500 Historical Operating and Normalized EPS The U.S. stock market needs earnings growth to rise in 2021 and 2022 as the global economy recovers. Image: BofA US Equity & Quant Strategy

S&P 500 Valuation Dispersion of Forward P/E vs. Relative Performance of Russell 1000 Growth over Value Valuations dispersion remains at high levels and is 42% above its long-term median. Image: BofA US Equity & Quant Strategy

Value/Growth Performance Historically, Value tends to outperform Growth for 33 months on average. Image: BofA US Equity & Quant Strategy

Inflation – CPI Index Since 1976 Are inflation fears overblown? Image: BofA US Equity & Quant Strategy

Valuation – U.S. Traling PE since 1901 Second highest PE since 1901. Does valuation still matter? Image: BofA US Equity & Quant Strategy

S&P 500 Sectors’ Relative Performance Sensitivity to Real Rates Can higher rates boost financials by increasing profit margins? Image: BofA US Equity & Quant Strategy

Inflation vs. S&P 500 YoY Price Returns Historically, the S&P 500 has generated the highest returns in periods of low single-digit inflation. Image: BofA US Equity & Quant Strategy