AAII – U.S. Retail Investors Allocation to Stocks, Bonds and Cash High equity allocations and low cash positions don’t always mean a market reversal is near. However, they suggest that much of the market’s potential gains may already be priced in, as investors have heavily committed to equities. Image: Real Investment Advice
S&P 500 Top 5 Stocks’ Weight vs. 1-Year Forward Returns While the current high market concentration is a significant feature of today’s market landscape, it doesn’t necessarily predict poor performance in the near term. Image: Goldman Sachs Global Investment Research
One-Day Move in U.S. Stocks that Beat on 4Q EPS in Excess of S&P 500 The market’s positive response to earnings beats, despite uncertainties surrounding Trump’s policies and the Fed’s direction, suggests that strong corporate performance is outweighing other factors in driving investor sentiment. Image: Bloomberg
Stocks – GRANOLAS vs. Magnificence Seven Driven by remarkable growth in the technology and AI sectors, the performance gap between the Magnificent Seven and the GRANOLAS has widened significantly since the start of 2024. Image: Goldman Sachs Global Investment Research
Stocks – High Quality Relative Earnings Revisions Breadth and High Quality Factor Relative Performance In a late-cycle market, investors looking for stability might find high-quality stocks appealing, given their historical ability to provide robust protection against both market volatility and economic downturns. Image: Morgan Stanley Research
Top 10 Mega Cap Stocks as % of S&P 500 The increasing dominance of the top 10 companies in the S&P 500 Index has sparked significant concerns regarding the index’s ability to offer adequate diversification for investors. Image: Real Investment Advice
U.S. Stocks – Magnificent Seven Market Value as a Percent of S&P 500 Market Value The “Magnificent Seven” stocks have significantly influenced the S&P 500, now accounting for 34% of its market capitalization, reflecting their dominance and the concentrated risk in the market. Image: Goldman Sachs Global Investment Research
Valuation – P/E Ratio of the Top 10 and Remaining Stocks in the S&P 500 Investor concerns regarding the high valuation of the S&P 500 and its top 10 stocks are growing, particularly as historical data suggests that elevated valuations can lead to subpar performance. Image: J.P. Morgan Asset Management
To What Extend Do You Think the U.S. “Magnificent Seven” Tech Stocks Will Either Be Up or Down in 2025? 67% of respondents expect the “Magnificent Seven” stocks to grow in 2025, with an average anticipated gain of 6.8%. In contrast, 33% predict a decline, with 22% of that group expecting a drop of over…
U.S. Small-Cap Stocks – Russell 2000 The small-cap Russell 2000 index has faced a notable downturn in December 2024, experiencing a decline of over 8%. This marks its worst monthly performance since September 2022, reflecting a notable shift in investor confidence. Image: Bloomberg
U.S. Stocks Returns during Year One of a President’s Second Term The performance of U.S. stocks during the first year of a second presidential term has shown mixed results historically, but recent trends suggest a more favorable outlook. Image: Carson Investment Research