Spread Between BBB-Rated Corporate Bond Yield and 90-Day U.S. Treasury Bill Yield As Warren Buffett once said, “be fearful when others are greedy and greedy when others are fearful.” Image: BofA Global Investment Strategy
Valuation – Wilshire 5000 as a Percent of GDP Warren Buffett’s favorite valuation metric remains high despite the recent sell-off. Image: Morgan Stanley Wealth Management
Long-Term U.S. Government Bond Quarterly Total Returns With low interest rates and inflation on the horizon, is Warren Buffett right to be bearish on bonds? Image: Financial Times
Bank to IG Index Spread Ratio and Bank to S&P 500 Ratio Are U.S. bank stocks a buying opportunity, despite Warren Buffett’s selloff? Image: Goldman Sachs Global Investment Research
Berkshire Hathaway Annual Return Minus the Total Return of the S&P 500 Heavy on banks, but light on tech. Has Warren Buffett lost his mojo? Image: Financial Times
U.S. Money Market Fund Assets During this period of high volatility, many investors place their money in U.S. money market funds. When Warren Buffett says “be greedy when others are fearful,” this is a valuable mindset. Image: BofA Global Investment Strategy
S&P 500 Total Return During Pre-Election Years “What we learn from history is that people don’t learn from history. And you certainly see that in financial markets all the time.” –Warren Buffett Image: Ryan Detrick, LPL Financial LLC
Stocks, Bonds, Bills, and Inflation since 1926 Great chart showing the hypothetical value of $1 invested in stocks, bonds, and bills, at the beginning of 1926. Warren Buffett is right when he says that stocks are generally better than bonds. Picture souce: Morningstar
Earnings Matter, Over the Long Run Over the long run, equities move with earnings. Currently, there is a big gap between U.S. and Europe earnings. As Warren Buffett said: “for 240 years, it’s been a terrible mistake to bet against America.” You may also like “Global Earnings since 2006.” Image: Cullen Roche
Global Earnings since 2006 This chart shows global earnings since 2006 (USA, Emerging Markets, Japan and Europe). As Warren Buffett said: “for 240 years, it’s been a terrible mistake to bet against America.” This chart below illustrates it well since 2006. You may also like “Earnings Matter, Over the Long Run.” Source: J.P. Morgan Asset Management