Real U.S. Household Net Worth vs. GDP The current wealth of American households, marked by an unprecedented gap between net worth and GDP, raises concerns about sustainability. A correction may occur if asset prices begin to realign with economic fundamentals. Image: Real Investment Advice
S&P 500 vs. U.S. Dollar Index A recovery in risk sentiment and higher equity prices has coincided with a weakening of the U.S. dollar, suggesting that investors are shifting their preferences towards riskier assets. Image: Goldman Sachs Global Investment Research
S&P 500 and NYSE Daily Advancing Volume 10x More than Daily Declining Volume When the daily advancing volume on the NYSE is ten times greater than the daily declining volume, it typically leads to higher S&P 500 prices over the next 12 months, with an average gain of 12.8% since 1979. Image: Carson Investment Research
S&P 500 with >100 52-Week Highs and >300 10-Day Highs on the Same Day On July 16, 2024, the strong breadth of over 100 S&P 500 stocks hitting 52-week highs and 300 reaching 10-day highs, usually results in S&P 500 higher prices over the next 12 months, with an average gain of 13% since 1980.…
Inflation and Shipping Costs Global shipping rates usually lead producer prices by six months, indicating a potential rise in the Consumer Price Index in the near future. Image: BofA Global Investment Strategy
Performance of Gold and Fed Cutting Cycles Federal Reserve interest rate cuts are often perceived as favorable for gold prices, particularly during periods of economic downturn. Image: Goldman Sachs Global Investment Research
Active Global Equity Fund Flows and % MSCI ACWI Members Trading Above 200-DMA Flows to active global equity funds correlate strongly with stock price dispersion. Higher dispersion creates more opportunities for active managers, especially in volatile markets, boosting investor interest and inflows. Image: BofA Global Investment Strategy
EPS Growth – Political Party and S&P 500 Profits Cycle While election results can impact markets in the short term, the underlying profitability of companies is a stronger driver of stock prices over time. Image: BofA US Equity & US Quant Strategy
Valuation – Relative Forward P/E of Russell 1000 Value vs. Growth Indices The current landscape for value and growth investing reveals a significant and persistent valuation gap, with value stocks trading at lower prices relative to their growth counterparts. Image: BofA US Equity & Quant Strategy
S&P 500 – Short Interest on the SPY and QQQ U.S. ETFs Low short interest in the SPY and QQQ U.S. ETFs suggests little speculation on price declines, which affects market dynamics by lowering the potential for a short squeeze. Image: J.P. Morgan
Gold vs. Japanese Yen Over the past two weeks, gold prices have declined by approximately 8% relative to the Japanese Yen. Image: BofA Global Investment Strategy