Profit Margins of S&P Large Caps and Small Caps

Profit Margins of S&P Large Caps and Small Caps Profit margins between small and large caps are widening. Industries with highest concentrations are getting all of the profit margin improvement. Image: Arbor Research & Trading LLC

S&P 500 and Margin Debt

S&P 500 and Margin Debt Margin debt has still not recovered from last December’s lows. Usually, it is mostly bullish for stocks, because investors are still fearful. Image: Merk Investments

Earnings, Margins and Valuation

Earnings, Margins and Valuation Considering earnings growth, operating margin and valuation, the S&P 500 should remain under pressure until Q3 earnings season. Image: Fidelity Investments

U.S. Corporate Profit Margin and Recession

U.S. Corporate Profit Margin and Recession The chart shows a U.S. corporate profit margin proxy. If it declines below 10% in this business cycle (red line), it could suggest a coming recession.

Margin Debt and S&P 500

Margin Debt and S&P 500 This chart shows that margin debt has not recovered from last December’s lows, while the stock market has risen sharply.Usually, it is mostly bullish for stocks, because investors are still fearful. Image: Yardeni Research, Inc.

Increased Productivity Boosts Profits Margins

Increased Productivity Boosts Profits Margins When a company increases productivity, it makes more products without increasing costs. Higher productivity can improve the company’s profit margin and total profits. During this business cycle, productivity has increased at an average rate of 1.3% year-over-year. But productivity has been cut in half since the previous business cycle. You…

U.S. Stock Market Bull and Bear Indicator

U.S. Stock Market Bull and Bear Indicator Using multiple financial data, this great model helps investors navigate through different market conditions. It suggests whether the U.S. stock market tendency is bullish, bearish or neutral. It is a contrarian indicator. A bullish signal suggests that the U.S. stock market may go up, while a bearish signal…

S&P 500 – Secular Bull and Bear Markets

S&P 500 – Secular Bull and Bear Markets The strong performance of the S&P 500 in 2023 and 2024 could be seen as a clear indication of a more sustained secular bull market, potentially extending until the late 2020s and early 2030s. Image: BofA Global Research Click the Image to Enlarge

Ranked Cross Asset Returns by Year

Ranked Cross Asset Returns by Year In 2023, the S&P 500 emerged as the top-performing asset, consistently outperforming other investment options. In 2024, the S&P 500 continues to maintain its position as the best performer thus far. Image: BofA Global Investment Strategy Click the Image to Enlarge

Truck Tonnage vs. S&P 500 Index

Truck Tonnage vs. S&P 500 Index The Truck Tonnage Index increased 4.3% in February. Trucks represent 72.6% of U.S. freight and serve as a barometer of the U.S. economy. This chart shows that the U.S. stock market tends to increase in line with the physical size and expansion of the U.S. economy (R² = 0.83…