S&P 500 EPS Estimates ex-Tech and Communications The S&P 500’s earnings growth is heavily dependent on the technology sector, highlighting the crucial role that tech companies play in driving overall corporate profits in the United States. Image: Bloomberg
Tech Flows Tech funds experienced their largest outflow since June 2024, marking a significant shift for the sector that had previously enjoyed positive momentum. Image: BofA Global Investment Strategy
Tech/Telecom/Healthcare vs. Financials/Energy/Materials as % of Global Equities Should long-term investors consider buying the dip in sectors such as Financials, Energy, or Materials? Image: BofA Global Investment Strategy
U.S. Tech Stocks During the first half of 2024, large U.S. tech companies have significantly outperformed their smaller counterparts, reflecting the ongoing dominance of major players in the tech industry. Image: BofA US Equity & Quant Strategy
U.S. Tech Valuations – Forward PE Ratio U.S. tech sector’s valuations have surpassed post-COVID highs. However, historical precedent suggests that these high valuations may be challenging to sustain going forward. Image: Morgan Stanley Wealth Management
Performance – Tech vs. S&P 500 Price Relative Will tech outperformance relative to the S&P 500 persist going forward? Image: BofA Global Investment Strategy
Tech Stocks – G3 Central Bank Balance Sheet vs. Nasdaq 100 Will the divergence between central bank liquidity and tech stock performance continue through 2024? Image: BofA Global Investment Strategy
Tech Flows (Annual Inflows to Tech) The significant inflows into tech funds highlight investors’ continued interest in the sector’s growth and innovation potential. Image: BofA Global Investment Strategy
Russell 2000 Technology Sector Relative to Total Index U.S. small-cap technology stocks have exhibited a noteworthy level of outperformance within the universe of U.S. small-cap stocks, which can be attributed to higher growth potential and the ability to innovate and disrupt traditional industries. Image: Morgan Stanley Wealth Management
U.S. Tech Stocks vs. Global Tech Stocks The remarkable outperformance of U.S. tech stocks underscores the competitive advantage and innovation prowess of U.S. companies, consistently surpassing global peers in growth and market value. Image: Topdown Charts
Performance – Biotech vs. Nasdaq 100 U.S. biotech stocks are still experiencing significant underperformance compared to the Nasdaq 100. Image: BofA Global Investment Strategy