VIX – 2020 Coronavirus Crisis vs. Global Financial Crisis The coronavirus crisis saw the VIX spiked much quicker than during the global financial crisis, and is normalizing more quickly as well. Image: J.P. Morgan Equity Derivatives Strategy
Top 5 Companies % of S&P 500 Market Capitalization The S&P 500 is currently more concentrated in the five largest stocks than during the dotcom bubble. Image: BofA Global Investment Strategy
Coronavirus Mortality vs. % of the Population Tested This chart suggests that the true COVID-19 mortality rate could be much lower than originally thought, about 0.4%. Image: J.P. Morgan Quantitative and Derivative Strategy
U.S. Bank Loans On the positive side, U.S. banks have significantly increased lending. Image: BofA Global Investment Strategy
U.S. Money Market Fund Assets During this period of high volatility, many investors place their money in U.S. money market funds. When Warren Buffett says “be greedy when others are fearful,” this is a valuable mindset. Image: BofA Global Investment Strategy
S&P 500 Dividend Futures Curve vs. 2019 Dividends The dividend futures market may be too negative, as it was the case in 2008. Image: BofA US Equity & Quant Strategy
Record Money Market Fund Inflows Money market funds get record inflow, as investors flood into the safety of cash. Image: BofA Global Investment Strategy
Strategists’ S&P 500 Year-End Targets Despite the extreme volatility, the consensus year-end target for the S&P 500 is now 3,038. Image: CNBC
U.S. High-Yield vs. Investment-Grade and MSCI ACWI ex-US (Leading Indicator) This chart suggests that the ratio of high-yield to investment-grade bond performance is a leading indicator for stocks. Image: BofA Global Investment Strategy
U.S. Equity Market Total Return Volatility and VIX Currently, the monthly volatility of U.S. equities is the highest on record. Image: BofA Global Investment Strategy