S&P 500 Cap-Weight vs. Equal-Weight Return

Cap-Weighted S&P 500 vs. Equal-Weighted S&P 500 The S&P 500 equal-weighted index has a more attractive valuation and potential for broader profit growth, suggesting it could outperform the S&P 500 market-cap weighted index in the near future. Image: Goldman Sachs Global Investment Research

Average 1-Month S&P 500 Return vs. Change in 10-Year U.S. Treasury Yields

Average 1-Month S&P 500 Return vs. Change in 10-Year U.S. Treasury Yields When U.S. Treasury yields rise quickly, the S&P 500 typically faces challenges due to factors like decreased stock valuation multiples, especially for expensive mega-cap growth companies linked to low rates. Image: Goldman Sachs Global Investment Research

U.S. Dollar vs. S&P 500 Index Forward Price/Earnings

U.S. Dollar vs. S&P 500 Index Forward Price/Earnings Keeping a close eye on the correlation between the U.S. dollar and S&P 500 valuation multiples is essential, especially considering the potential end of the greenback’s bull market cycle. Image: Morgan Stanley Wealth Management

S&P 500 to M2 Ratio

S&P 500 to M2 Ratio The rising S&P 500 to M2 ratio suggests a potential overvaluation in the U.S. stock market. This trend implies greater demand for stocks compared to the supply of money, worrying investors and analysts. Image: Topdown Charts

S&P 500 Deviation From Long-Term 225-Day Moving Average

S&P 500 Deviation From Long-Term 225-Day Moving Average The deviation of the S&P 500 index from its 225-day moving average is reaching rare extremes, prompting speculation about the possibility of an approaching market top. Image: Real Investment Advice

S&P 500 Normalized P/E vs. Subsequent Annualized Returns

S&P 500 Normalized P/E vs. Subsequent Annualized Returns Given current high valuations, it is likely that the U.S. stock market will experience lackluster returns over the next 10 years. Image: BofA US Equity & Quant Strategy

Forward 12-Month P/E Ratio for S&P 500

Valuation – Forward 12-Month P/E Ratio for the S&P 500 Index When valuations remain high for an extended period, investors should be mindful of the potential for lower future returns. Image: Morgan Stanley Wealth Management

Valuation Metrics

Valuation Metrics S&P 500 valuation metrics remain elevated by historical standards. Image: Goldman Sachs Global Investment Research

S&P 500 vs. Top 10

S&P 500 vs. Top 10 Investors can benefit from the currently wide valuation dispersion by focusing on low beta stocks that have stable cash flows and strong balance sheets. Image: J.P. Morgan Asset Management

U.S. Stock Market Valuation – Cape Ratio

U.S. Stock Market Valuation – Cape Ratio The S&P 500’s CAPE ratio remains historically high, which could potentially lead to lower subsequent returns over the following 10 years. Image: Real Investment Advice