After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added While U.S. corporate profits fell in Q1 2025 due to higher costs and economic uncertainty, they remain historically high, reflecting both the strength and the vulnerability of large companies in the current economic climate. Image: Bloomberg
S&P 500 Ex. Financials – Net Leverage and Interest Coverage Since the Global Financial Crisis, there has been a sharp increase in the median S&P 500 stock’s leverage ratio, a trend that could have substantial effects on market risk and volatility. Image: Goldman Sachs Global Investment Research
Google Searches for “Global Financial Crisis” and “Great Recession” While fears of a 2025 tariff-driven recession evoke memories of 2008, some investors see today’s prevailing pessimism as a contrarian bullish signal for stocks. Historically, extreme bearish sentiment has often marked market bottoms. Image: CNBC
U.S. True Financial Conditions Index The U.S. True Financial Conditions Index stands at 6, indicating a slightly accommodative financial environment. Image: Gavekal, Macrobond
U.S. Financial Conditions Index and Real GDP Growth from FCI Last week, U.S. financial conditions tightened significantly following the White House’s announcement of “reciprocal” tariffs and China’s retaliatory measures, raising global concerns among investors and policymakers. Image: Goldman Sachs Global Investment Research
Equity Share of Household Financial Assets Compared to U.S. households, Europeans exhibit lower stock ownership rates, which can be explained by cultural savings attitudes, structural differences in pension systems, and a stronger preference for liquid investments. Image: Goldman Sachs Global Investment Research
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
Weekly Financials Flows Outflows from financial equity funds highlight a cautious approach from investors, reflecting broader economic concerns and market volatility. Image: BofA Global Investment Strategy
Tech/Telecom/Healthcare vs. Financials/Energy/Materials as % of Global Equities Should long-term investors consider buying the dip in sectors such as Financials, Energy, or Materials? Image: BofA Global Investment Strategy
U.S. Households Allocation to Corporate Equities as a % of Financial Assets Historically, periods of high household equity allocation have been followed by lower market returns, suggesting that current trends may signal potential risks for future investors. Image: MarketDesk Research
U.S. Private Sector Financial Assets % of GDP The growing disconnect between U.S. financial asset values and GDP raises concerns about the widening wealth gap, potential systemic risks, economic instability, and policy challenges. Image: BofA Global Investment Strategy