Sentiment Indicator and Stock Positioning

Sentiment Indicator and Stock Positioning The GS sentiment indicator not being stretched at the moment is a positive sign, as it suggests a balanced sentiment among investors, which is generally viewed as favorable for market stability. Image: Goldman Sachs Global Investment Research

Market Capitalization of the Largest Stock Relative to the 75th Percentile Stock

Market Capitalization of the Largest Stock Relative to the 75th Percentile Stock The concentration of the U.S. equity market is currently at historically high levels, nearing its most concentrated state in a century, driven by the dominance of a few mega-cap tech companies. Image: Goldman Sachs Global Investment Research

U.S. Stocks – Magnificent Seven Market Value as a Percent of S&P 500 Market Value

U.S. Stocks – Magnificent Seven Market Value as a Percent of S&P 500 Market Value The “Magnificent Seven” stocks have significantly influenced the S&P 500, now accounting for 34% of its market capitalization, reflecting their dominance and the concentrated risk in the market. Image: Goldman Sachs Global Investment Research

Survey – Biggest Risks to the Current Relative Market Stability

Survey – Biggest Risks to the Current Relative Market Stability Investor sentiment for 2025 highlights four main concerns: a potential global trade war, a decline in U.S. tech stocks, persistent inflation leading to hawkish central bank policies, and unexpectedly rising bond yields. Image: Deutsche Bank

Stock Market Concentration and Volatility

Stock Market Concentration and Volatility When equity markets become concentrated, they get a little too excited—like kids in a candy store! Image: Goldman Sachs Global Investment Research

S&P 500 Market Concentration vs. 10-Year Annualized Forward Returns

S&P 500 Market Concentration vs. 10-Year Annualized Forward Returns High concentration in the S&P 500 may boost short-term performance, but it often signals lower future returns, particularly during non-recessionary periods. Image: Goldman Sachs Global Investment Research

Market – Breadth Index

Market – Breadth Index With the Goldman Sachs Breadth Index at 21, it remains below the 30-year average of 35, indicating that fewer stocks are contributing to market gains. Image: Goldman Sachs Global Investment Research

Ownership Breakdown of the U.S. Equity Market

Ownership Breakdown of the U.S. Equity Market (Share of Corporate Equity Market) U.S. households hold 38% of the U.S. equity market, reflecting strong confidence in stocks. However, ownership is concentrated, with the wealthiest 10% owning about 93% of all stocks owned by households. Image: Goldman Sachs Global Investment Research

Performance – U.S. Small Cap Stocks vs. Large Cap Stocks

Performance – U.S. Small Cap Stocks vs. Large Cap Stocks Small caps continue to face significant challenges relative to large caps, a trend that has persisted for several years. However, there is a growing sense of cautious optimism about their potential recovery as market conditions change. Image: BofA Global Research