Financial Conditions and U.S. Recessions

Financial Conditions and U.S. Recessions The Fed may face challenges due to looser financial conditions, as it requires tighter conditions in order to effectively curb inflation towards its 2% target. Will the Fed adopt a more hawkish stance next month? Image: Real Investment Advice

S&P 500 and Chicago Fed National Financial Conditions Index

S&P 500 and Chicago Fed National Financial Conditions Index A sustained improvement in the Chicago Fed National Financial Conditions Index is a promising sign for the S&P 500 to continue its upward trajectory and potentially reach new recovery highs. Image: BofA Global Research

Total Return Performance of Major Global Financial Assets in U.S. Dollar

Total Return Performance of Major Global Financial Assets in U.S. Dollar During periods of uncertainty and increasing geopolitical tensions, investors frequently seek the safety of gold as a safe-haven asset, which can drive up its price, as was the case in October. Image: Deutsche Bank

Total Return Performance of Major Global Financial Assets Over Last 15 Years

Total Return Performance of Major Global Financial Assets Over Last 15 Years Over the last 15 years, the Nasdaq has experienced a significant increase in value, with a staggering rise of 647%, while the S&P 500 has also seen notable growth, albeit to a lesser extent, with an increase of 396%. Image: Deutsche Bank

Valuation – Real Assets vs. Financial Assets

Valuation – Real Assets vs. Financial Assets The price of real assets relative to financial assets being very low suggests that investors should consider owning more real assets, such as precious metals and real estate. Image: BofA Global Research

U.S. Fed Funds Rate and Financial Events

U.S. Fed Funds Rate and Financial Events History repeats itself over and over again, as Fed tightening cycles end with a financial event. Image: Deutsche Bank

Financials and Banking Exposure by Index

Financials and Banking Exposure by Index The Russell 2000 has more exposure to financial stocks (18.5%) than the S&P 500 (10.5%). Image: J.P. Morgan Asset Management