MSCI World Value vs. Growth Given the current market dynamics, will the outperformance of growth stocks over value stocks be reversed in the future, with value stocks potentially taking the lead? Image: Goldman Sachs Global Investment Research
Market – Geographical Breakdown of MSCI World Index Constituents The combined market capitalization of the Magnificent Seven would make it the second-largest country stock exchange globally. This would surpass the total value of many thriving economies. Image: BofA Global Research
Valuation – MSCI U.S. 12-Month Forward P/E Relative to MSCI World Ex. U.S. There is a prevailing sentiment suggesting that U.S. equity valuations are not currently appealing. Image: J.P. Morgan
South Korea Exports vs. MSCI World EPS South Korea’s exports tend to lead global earnings. Image: J.P. Morgan
Cumulative Performance of MSCI World Around Hiking Cycles Historically, global equity markets have performed well during hiking cycles. Image: J.P. Morgan
Valuation – Price/Earnings Ratio, S&P 500 vs. MSCI World Ex-U.S. Should equity investors consider overseas stocks? Image: Morgan Stanley Wealth Management
MSCI World Value Index/MSCI World Growth Index vs. Global Agg. Treasuries Index, Yield to Worst Value should outperform Growth and follow the rise in global rates. Image: Morgan Stanley Wealth Management
Performance – MSCI World Ex-U.S. and MSCI U.S. It has not paid to bet against U.S. stocks so far this year, as the gap between the U.S. stock market and stocks from the rest of the world continues to widen. Image: The Daily Shot
Valuation – U.S. 10-Year Real Yield and MSCI World Index Forward Price/Earnings Ratio The price of global equities is expected to fall, if U.S. real yields rise. Image: Morgan Stanley Wealth Management
Valuation – U.S. 10-Year Real Yields and MSCI World N12M PE (Inverted) If U.S. real yields rise, the price of global equities is expected to fall. Image: Morgan Stanley Research
MSCI World Value vs. Growth Relative Index and U.S. 10-Year Real Yields Value tends to outperform growth as U.S. real rates rise (R² = 0.93). Image: Morgan Stanley Research