Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities
S&P 500 Average Annual Price Return Historical data indicates that during positive years, the S&P 500 typically achieves substantial gains, averaging an annual return of 19.0% since 1928. Image: Carson Investment Research
U.S. Dollar Index and Rest of the World GDP A weaker U.S. dollar typically bodes well for the global economy by boosting growth prospects, improving trade dynamics, and encouraging investment in international markets. Image: BofA Predictive Analytics
Global Debt Global debt reached an all-time high of $313tn at the end of 2023, highlighting the challenges and potential risks associated with managing and servicing debt in both developed and developing economies. Image: BofA Global Investment Strategy
G10 FX Carry Trade Index The Bank of Japan’s recent actions caused market turmoil termed an “ugly deleveraging event,” reflecting ongoing economic challenges in Japan. Navigating a post-deflationary landscape adds complexity to the situation. Image: BofA Global Investment Strategy
U.S. Regime Indicator In April, the U.S. regime indicator showed improvement, indicating positive signs and encouraging trends, which is great news. Image: BofA US Equity & Quant Strategy
Buybacks – Share of S&P 1500 Companies Paying a Dividend or Repurchasing Stock Over the years, the share of S&P 1500 companies engaging in share repurchases has surged. In 1995, only 3% participated, while in 2023, it reached 70%, greatly enhancing shareholder returns. Image: Goldman Sachs Global Investment Research
Consecutive Trading Days of Inverted 10Y-2Y U.S. Treasury Yield Curve The anticipation of Fed easing is being driven by the aging of yield curve inversion. Market participants are expecting the Fed to cut rates in order to stimulate economic growth and prevent a potential recession. Image: Morgan Stanley Wealth Management
FMS Investors – Net % Say Global Profits Will Improve vs. ISM Manufacturing New Orders/Inventories There is a growing belief among FMS investors that global profits will improve in the future, which is encouraging. Image: BofA Global Fund Manager Survey
S&P 500 EPS Yield – IG Yield vs. TTM Buyback Yield Higher borrowing costs can discourage companies from engaging in stock buybacks. Image: BofA US Equity & Quant Strategy
Global PMI Breadth Global PMI breadth is very impressive and encouraging. Image: Topdown Charts