Valuation – U.S. Equity Market Capitalization to GDP The U.S. equity market cap to GDP ratio is near an all-time high at approximately 187%, suggesting a significant overvaluation of the U.S. stock market. Image: Goldman Sachs Global Investment Research
Do You Believe the Risk of an Equity Market Correction at Some Point Over the Next 3-6 Months Is High or Low? JPMorgan’s survey reveals that 82% of their clients anticipate a high likelihood of an equity market correction within the next 3-6 months. Image: J.P. Morgan
When Do You Expect the U.S. Equity Market Will Peak? 77% of financial advisors believe the bull market will continue beyond 2024, as they expect stellar corporate results, easy financial conditions, and lower interest rates to support its continuation. Image: BofA US Equity & Quant Strategy
Gold – Beta of USD/xxx to Equity Market Volatility Related to Government Spending Gold has been a very good hedge against debt ceiling worries in the past. Image: Deutsche Bank
Equity Market Volatility Related to Uncertainty over Government Spending Equity market volatility may spike when the debt ceiling is under discussion. Image: Deutsche Bank
Total Equity Market Capitalization per Country The United States has the largest equity market capitalization in the world (over $41 trillion as of December 31, 2022). Image: Goldman Sachs Global Investment Research
Annual Change in Global Equity Market Capitalization The global equity market capitalization has lost $30tn year-to-date. Image: Goldman Sachs Global Investment Research
Equity Markets – Absolute Net % OW (by Sector), FMS Investors Are healthcare, staples and energy the best sectors to invest in right now? Image: BofA Global Fund Manager Survey
Do You Think Global Equity Markets Will Experience a Bear Market? Most FMS investors expect that global equity markets will experience a bear market this year. Image: BofA Global Fund Manager Survey
Global Equity Markets – MSCI ACWI Index with HY/IG Flows BofA sees a rates shock this year and remains bearish on equities and credit. Image: BofA Global Investment Strategy
Money Market Funds Assets as a % of Global Equity Market Capitalization Cash has been rising in the last few months but remains low as a % of global equity market capitalization. Image: BofA Global Investment Strategy