S&P 500 Valuations According to a macro model developed by Goldman Sachs, U.S. equities are suggested to be overvalued by more than 40%, raising concerns among market participants about long-term sustainability and future market corrections. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 CAPE Ratio A high CAPE ratio suggests caution but isn’t a reliable market timing indicator. Markets may remain overvalued for extended periods, typically leading to subdued long-term equity returns. Image: Deutsche Bank
U.S. Dollar – Overall Weighted Valuations Ranked The U.S. dollar is considered the second most overvalued liquid currency globally, based on three valuation metrics: Purchasing Power Parity (PPP), Behavioral Equilibrium Exchange Rate (BEER), and Fundamental Equilibrium Exchange Rate (FEER). Image: Deutsche Bank
U.S. 10-Year Real Rate A potential rise in U.S. real rates could cause the collapse of the AI bubble, leading to turbulence in the stock market. Overvalued AI companies facing declines could trigger widespread market instability, eroding investor confidence. Image: BofA Global Investment Strategy
U.S. Dollar Index and Purchasing Power Parity Fair Value According to the measure of Purchasing Power Parity fair value, the U.S. dollar remains overvalued. Image: BCA Research
Valuation – Rule of 20 vs. S&P 500 Total Return Index The rule of 20 (P/E + CPI) still suggests that U.S. equities are overvalued. Image: Real Investment Advice
U.S. Dollar on a REER Basis Will the U.S. dollar continue to rise? On a real effective exchange rate basis, it appears to be overvalued. Image: Gavekal, Macrobond
Valuation of Equities in the Region FMS investors think the U.S. equity market is the most overvalued region. Image: BofA Global Fund Manager Survey
Top S&P 500 Stocks of 2020 Is Tesla stock overvalued or a buy for 2021? Image: CNBC
U.S. Dollar-Euro Exchange Rate Forecast According to Goldman Sachs, the U.S. dollar offers poor fundamentals and remains overvalued despite the recent selloff. Image: Goldman Sachs Global Investment Research
Euro to U.S. Dollar (EUR/USD) and U.S. Dollar to China Yuan (USD/CNY) According to Goldman Sachs, the U.S. dollar remains overvalued despite the recent selloff, and offers poor fundamentals. Image: Goldman Sachs Global Investment Research