Inflation – MSCI ACWI Energy vs. Consumer Discretionary Price Relative Historically, real assets tend to perform well in inflationary environments. Image: BofA Global Investment Strategy
Equities – MSCI ACWI Total Return vs. U.S. High Yield/High Grade Total Return Relative Is credit a bearish sign for global equities? Image: BofA Global Investment Strategy
G3 Credit Impulse and MSCI ACWI vs. 10-Year UST (Leading Indicator) Is it time to switch to defensives? Image: Oxford Economics
MSCI ACWI – Global Equities Breadth Global equity market breadth is deteriorating. Is it time to reduce exposure to risk assets? Image: Topdown Charts
Global Manufacturing PMI vs. MSCI ACWI PMI’s are peaking. Historically, markets tend to lead the macro for most time periods. Image: BofA Global Investment Strategy
MSCI ACWI Performance – Real Rates and Inflation Expectations Historically, inflation expectations tend to drive equity performance. Image: Morgan Stanley Wealth Management
Global Stocks (MSCI ACWI ex-U.S.) – Global Equity Prices Excluding U.S. Stocks Global stocks ex-U.S. remain below pre-Global Financial Crisis highs. Image: BofA Global Investment Strategy
Returns – G7 + China Free Liquidity and MSCI ACWI (Leading Indicator) Global free liquidity continues to rise. When global free liquidity is above 10%, equity markets tend to perform well: the average next 12-month return is 23.4% with a hit ratio of 100% since 2009. Image: BofA Global Research
Major Economies Central Banks Total Assets and MSCI ACWI Central bank balance sheet expansion is expected to push equities higher. Image: BofA Global Research
MSCI ACWI Ex. U.S. ETF and ACWI Ex. U.S. Relative to S&P 500 The 3-year bear market for global equities ex. U.S. is over. Image: Strategas Research Partners
MSCI All Country World Index (MSCI ACWI) – Value Minus Growth, One-Day Change Should investors forget growth stocks, as value investing is back in play? Image: Morgan Stanley Wealth Management