Stocks – Sector Correlations vs. Intrasector Stock Correlations The fact that stocks are more differentiated than sectors bodes well for stock pickers. Image: BofA US Equity & Quant Strategy
Deflation Assets vs. Inflation Assets Is the 40-year bull market in bonds over? Deflation Assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield.Inflation Assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy
Coronavirus – Global COVID-19 Cases vs. Global Vaccines Administered Global vaccinations far exceed global COVID-19 cases. Image: BofA Global Investment Strategy
Housing – U.S. Home Prices and Lumber Price Will the housing market boom continue, as U.S. home prices rise to seven-year high? Image: BofA Global Investment Strategy
Tech Fund Flows (6-Week Cumulative) Record inflows to tech past 6 weeks, as investors expect the tech sector to continue to outperform. Image: BofA Global Investment Strategy
Valuation – the Ratio of S&P 500 Market Capitalization vs. M2 Money Supply What’s priced in? Currently, the S&P 500 trades well above the post-crisis valuation vs. M2 money supply. Image: BofA US Equity & Quant Strategy
GWIM Flows to Cash BofA’s private clients are drawing down large amounts of cash. Image: BofA Global Investment Strategy
S&P 500 Foreign Sales % by Year The S&P 500 is more global than 2-3 decades ago, as 30% of S&P 500 sales come from overseas. Image: BofA US Equity & Quant Strategy
Weekly Global Equity Flows Global equity inflows remain very strong. Image: BofA Global Investment Strategy
The Last Oil Supercycle and Its Drivers Should investors expect the start of a new supercycle in oil? Image: J.P. Morgan Quantitative and Derivative Strategy
Rolling 10-Year Correlation of Real S&P 500 EPS Growth vs. Real U.S. and Global GDP Growth Real S&P 500 EPS growth tends to be more correlated to global than U.S. GDP growth. Image: BofA US Equity & Quant Strategy