Equities as a Percent of Financial Assets With favorable market conditions and increasing stock valuations, Americans now hold more than 37% of all assets in equities, marking a record high. Image: Morgan Stanley Wealth Management
U.S. Equities – S&P 500 Equal Weight vs. S&P 500 The performance divergence of the S&P 500 index and its equal-weighted version highlights how a select group of high-flying, large-capitalization stocks is overshadowing broader market weaknesses. Image: Bloomberg
Performance of U.S. vs. Rest of World Equities Investing in U.S. corporations is like betting on a horse that always finishes the race—sure, it might stumble, but it usually crosses the finish line ahead of the pack! Image: BlackRock Investment Institute
Equities – FMS Global Equity Allocation FMS investors significantly increased their equity allocation in October, the largest rise since June 2020. This shift is primarily due to a favorable economic climate resulting from the easing of monetary policies by major central banks. Image: BofA Global Fund Manager Survey
Flows to Japan Equities While Japanese equities have faced significant outflows recently due to shifting investor sentiment, underlying structural reforms and an evolving economic landscape may provide opportunities for recovery in the future. Image: BofA Global Investment Strategy
Performance – Price Ratio of Emerging Markets to U.S. Equities Since the global financial crisis, emerging market equities have continuously underperformed U.S. equities, leading to the current situation where the ratio between the two is at its lowest since 1969. Image: BofA Global Investment Strategy
Equities – China’s Valuations If the MSCI China P/E ratio increases from its current range of 11-12x to a peak of 15-16x, this could represent a potential upside of approximately 40%. Image: BofA Global Investment Strategy
U.S. vs. Developed Market Equities (ex-US) Price Relative While there is potential for U.S. equities to maintain their lead in the near term due to strong earnings and market dynamics, historical cycles suggest that this dominance may wane as international markets recover and valuations adjust. Image: BofA Global Investment Strategy
Global Equities Flows In August, global equity funds saw significant outflows, the largest since 2022, reflecting a cautious sentiment among investors. Image: J.P. Morgan
Equities vs. Bonds Recent trends suggest that the risk/reward profile of bonds, particularly U.S. Treasuries, has become more favorable compared to equities. Image: Gavekal, Macrobond
Returns – U.S. Equities vs. Commodities While commodities can serve as a hedge in certain market conditions, U.S. equities are likely to continue outperforming them over the long term due to their lower volatility, more stable returns, and historical performance trends. Image: BofA Global Investment Strategy