U.S. Private Sector Financial Assets % of GDP The disconnect between the value of U.S. financial assets and GDP raises concerns about the widening wealth gap, potential systemic risks, and economic stability, while also posing policy challenges. Image: BofA Global Investment Strategy
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
U.S. Government Spending as % of GDP U.S. government spending as a share of GDP is expected to increase significantly over the next decade. This could potentially have substantial consequences for the long-term stability of the economy. Image: BofA Global Investment Strategy
Modeled Forward Russell 2000 Returns Conditional on Coincident Real U.S. GDP Growth The performance of small-cap stocks is linked to economic conditions. Weak U.S. economic growth may affect their returns, while strong growth offers potential for solid returns. Image: Goldman Sachs Global Investment Research
U.S. Nominal GDP Less Government Budget Deficit While fiscal spending in the United States has the potential to boost GDP growth, it is important to carefully consider the long-term implications and trade-offs associated with such policies. Image: Morgan Stanley Wealth Management
U.S. Budget Deficit as a % of GDP The trend of elevated deficits and increasing debt can have potential long-term implications for the U.S. economy. Image: BofA Global Investment Strategy
Advanced Economies – Household Sector Credit To GDP Are household balance sheets a potential source of risk? Image: BCA Research
U.S. Debt Held by Public as Share of GDP The anticipated increase in the U.S. federal debt by 2030 could potentially harm the economy, leading to higher interest payments, constrained resources, and potential limitations on growth and government responsiveness. Image: Deutsche Bank
U.S. Fiscal Stimulus as a Percent of GDP The chart shows the impact of the Trump fiscal stimulus on U.S. economic growth until 2021. You may also like “Despite Full Employment, Why Real GDP Should Stay Above Potential GDP?“ Image: ClearBridge Investments
U.S. Output Gap and Inflation This chart shows that actual U.S. GDP is higher than potential GDP. Historically, a positive output gap leads to inflation. Image: Richardson Wealth