Discretionary vs. Systematic Equity Positioning Both discretionary investors and systematic strategies have raised their equity exposure to neutral levels, signaling a more balanced risk outlook amid ongoing uncertainties. Image: Deutsche Bank Asset Allocation
CTAs Exposure to Equities CTAs have significantly increased their long equity positions in recent months, with exposure now reaching the 89th percentile—indicating a notable rise compared to historical levels. Image: Deutsche Bank Asset Allocation
Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total The S&P 500’s top 10 stocks hold a disproportionately large share of the index’s weight relative to their earnings, which amplifies risks tied to volatility, diversification, and sector exposure. Image: Goldman Sachs Global Investment Research
Small Cap Equity Positioning With small-cap equity allocations at the 23rd percentile, there is considerable room for increased exposure—especially for investors focused on long-term growth. Image: Deutsche Bank Asset Allocation
Equity – MSCI Japan Market Cap Relative to World Market Cap Considering the improved outlook, attractive valuations, and progress in corporate governance, should investors consider increasing their exposure to Japanese equities? Image: BofA Global Investment Strategy
Beta Exposure of Large Cap U.S. Active Managers vs. S&P 500 Among active managers, there is a significant drop in beta exposure to GFC levels. 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
CTAs Exposure to Equities CTAs overall equity exposure is in the 42th percentile. Image: Deutsche Bank Asset Allocation
Major U.S. Mutual Funds’ Net Exposure to U.S. Equities U.S. equity exposure of major U.S. mutual funds is in line with the historical average. Image: Nomura
U.S. Household Ownership of Stocks, % of Total Assets The elevated equity exposure of U.S. households, while not an absolute sign of impending market downturns, highlights the necessity for cautious investment decisions and strategic portfolio management. Image: J.P. Morgan
GWIM Cash Allocation as % Asset Under Management BofA’s private clients have reduced their cash allocation, remaining below the long-term average, while increasing their equity exposure. Image: BofA Global Investment Strategy