Valuation – Market Capitalization of Stock Market / M2 Money Supply The current high market capitalization of U.S. equities relative to M2 suggests that investors are anticipating very optimistic future earnings and a stable economic outlook. Image: Gavekal, Macrobond
S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The dominance of the top 10 U.S. companies in the S&P 500 Index raises concerns about the index’s ability to provide adequate diversification for investors. Image: Societe Generale Cross Asset Research
Total Cryptocurrency Market Capitalization The cryptocurrency market has witnessed significant growth recently, with its total market capitalization approaching US$4 trillion. Image: Gavekal, Macrobond
Short Interest as % of Market Capitalization S&P 500 Median Median short interest in the S&P 500 has dropped to 1.8%, a relatively low figure indicating that market participants are generally optimistic or, at least, not notably bearish about the index’s future performance. Image: Goldman Sachs Global Investment Research
Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities
China as % of MSCI ACWI Market Capitalization Assuming that China’s market capitalization as a percentage of the MSCI ACWI rises to its 2018 high of 4.0%, this scenario presents a potential upside of approximately 30% for investors. Image: BofA Global Investment Strategy
Global Stock Market Capitalization The return to October 2021 highs signifies a robust recovery phase for global equities, driven by positive market dynamics and economic conditions. Image: BofA Global Investment Strategy
Market Capitalization of Six Largest Companies as Share of S&P 500 Total With the six largest companies accounting for 29% of the S&P 500’s total market capitalization, discussions about diversification have become increasingly relevant. A well-diversified portfolio is vital for effective risk management. Image: Goldman Sachs Global Investment Research
Europe’s GRANOLAS Stocks and Market Capitalization While Europe may not have the Magnificent Seven, it does have the GRANOLAS, which represents Glaxosmithkline, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, Astrazeneca, SAP, and Sanofi. Image: Alpine Macro
30 Largest Stocks as a Percentage of S&P 500 Market Capitalization The 30 largest stocks account for 53% of the S&P 500’s total market capitalization, raising concerns about the index’s concentration and potential risks. Image: Morgan Stanley Wealth Management
S&P 500 Valuation – Real Market Capitalization to Real GDP Ratio The inflation-adjusted market capitalization to GDP ratio is a valuable tool to evaluate the U.S. stock market’s valuation. The high current ratio implies a potential overvaluation. Image: Real Investment Advice