Returns for Major Global Financial Assets Over the past 50 years, the annualized equity returns in the U.S., adjusted for inflation, have been around 7.5%. This solid long-term performance has allowed investors to achieve significant growth, outpacing the rate of inflation. Image: Deutsche Bank
Financial Conditions Financial conditions in G3 economies have been experiencing a trend of loosening, posing challenges for central banks in their efforts to manage inflation and making it more difficult to keep it under control. Image: BofA Global Research
Equity – Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors Compared to historical standards, a 52% allocation to equities among investors is considered high, which increases the potential for volatility and losses, particularly during a market downturn. Image: Goldman Sachs Global Investment Research
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 real estate and precious metals. Image: BofA Global Research
U.S. Household Financial Assets The total amount of cash held by households in the United States has reached a staggering $18 trillion. Image: BofA Research Investment Committee
10-Year U.S. Treasury Real Rate vs. U.S. Financial Conditions Index The decoupling of U.S. financial conditions from U.S. real rates persists. Image: Morgan Stanley Wealth Management
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
U.S. True Financial Conditions Index The U.S. True Financial Conditions Index remains tight. Image: Gavekal, Macrobond
Eurozone Bank Lending Flow to Non-Financial Corporations Bank lending in the European area is contracting, which is unusual outside of crises. Image: BofA Global Investment Strategy
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
FMS Financial Market Stability Risks Index vs. S&P 500 Financial market stability risks continue to weigh on the S&P 500. Image: BofA Global Fund Manager Survey