Risk Appetite Index As investors embrace a more aggressive stance, the risk appetite indicator is back to elevated levels, signaling a willingness to take on higher levels of risk for potentially greater returns. Image: Goldman Sachs Global Investment Research
S&P 500 Equity Risk Premium Despite potential in U.S. equities, the decline in equity risk premium suggests caution is needed, prompting diversification across asset classes for risk management. Image: BofA Global Research
What Presents the Biggest Risk to Markets over the Next 6 Months in Your View? According to a recent survey, 27% of JPM customers consider high valuations to be the biggest risk to markets, indicating a growing concern about the potential for overinflated asset prices. Image: J.P. Morgan
Do You Believe the Risk of an Equity Market Correction at Some Point Over the Next 3-6 Months Is High or Low? JPMorgan’s survey reveals that 82% of their clients anticipate a high likelihood of an equity market correction within the next 3-6 months. Image: J.P. Morgan
S&P 500 Equity Risk Premium Considering the substantial decline in the equity risk premium, which currently stands well below its historical average, should investors approach U.S. equities with caution? Image: BofA US Equity & Quant Strategy
Risk Appetite Indicator for Different Asset Classes The strong risk appetite of investors for credit investments indicates their confidence in the potential returns compared to other investment options. Image: Goldman Sachs Global Investment Research
S&P 500 Valuations – Combined P/E Ratio and Equity Risk Premium Given the S&P 500’s high P/E ratio, should investors be cautious about U.S. equities? And do they receive adequate compensation for the risk associated with owning U.S. equities rather than bonds? Image: Topdown Charts
VIX and Geopolitical Risk Index The VIX tends to be sensitive to geopolitical events and can serve as an indicator of market sentiment during times of heightened geopolitical risk. Image: Goldman Sachs Global Investment Research
Biggest Downside Risk to the U.S. Dollar over the Next 6 Months The U.S. dollar is considered to be most vulnerable to the downside risk of a hard landing scenario, which is widely regarded as the primary concern that could negatively impact its value. Image: BofA Global Research
U.S. Equity Risk Premium – Long-Term View Should investors approach U.S. equities with caution due to the significant decline in the equity risk premium, which stands well below its historical average? Image: Topdown Charts
S&P 500 Equity Risk Premium The current multi-decade lows of the S&P 500 equity risk premium suggest that bonds are relatively more attractive than equities. Image: Morgan Stanley Research