Quantitative Easing – Net Asset Purchases for G-7 Central Banks

Quantitative Easing – Net Asset Purchases for G-7 Central Banks Net asset purchases for G-7 central banks approached $1.4 trillion in March. To put things in perspective, this is more than five times higher than the previous peak of $270 billion in April 2009. Image: Bloomberg

Does Quantitative Easing Affect Valuation?

Does Quantitative Easing Affect Valuation? More fundamentally, low interest rates, high margins, low taxes, buybacks & free cash flow drive stocks higher. Image: Fidelity Investments

Fed Balance Sheet

Fed Balance Sheet Goldman Sachs predicts the Fed will slow its balance sheet reduction in June 2025 and end quantitative tightening by September, which could influence market liquidity and interest rates. Image: Goldman Sachs Global Investment Research

S&P 500 EPS – Potential U.S. Tax Impact on Earnings Per Share

S&P 500 EPS – Potential U.S. Tax Impact on Earnings Per Share Donald Trump’s plan to cut the U.S. corporate tax rate from 21% to 15% could significantly impact S&P 500 earnings per share, potentially increasing EPS by 4% and improving profitability for many companies in the index. Image: BofA US Equity & Quant Strategy

S&P 500 EPS Growth

S&P 500 EPS Growth Consensus estimates suggest that 72% of S&P 500 companies are projected to report EPS growth in 3Q24, reflecting a broader trend of improving earnings outlooks across various sectors. Image: BofA US Equity & Quant Strategy

S&P 500 Historical FY2 EPS Revisions vs. Consensus EPS

S&P 500 Historical FY2 EPS Revisions vs. Consensus EPS Recent downward revisions in S&P 500 EPS estimates for 2024-25 reflect a cautious approach from analysts, primarily driven by economic uncertainties. Image: BofA US Equity & Quant Strategy

S&P 500 Earnings

S&P 500 Earnings The impressive returns of the S&P 500 over the past year have been largely driven by earnings, particularly from a handful of high-performing tech stocks. Image: BofA US Equity & Quant Strategy

Sell Side Consensus Indicator

Sell Side Consensus Indicator The Sell Side Indicator, which tracks Wall Street strategists’ equity allocation recommendations, has remained unchanged in September. The current level suggests that the S&P 500 may see positive gains over the next 12 months. Image: BofA US Equity and Quant Strategy