Valuation – MSCI U.S. P/E Ratio

Valuation – MSCI U.S. P/E Ratio U.S. equity valuations are at high levels, suggesting future returns could be lower than historical averages. Image: Gavekal, Macrobond

Risk Appetite Indicator Level – Drawdowns and Up Moves

Risk Appetite Indicator Level – Drawdowns and Up Moves Time to reduce risk? When the Risk Appetite Indicator (RAI) level is above 1, near-term returns tend to be lower on average, with larger drawdowns. Image: Goldman Sachs Global Investment Research

U.S. Equity Risk Premium and VIX

U.S. Equity Risk Premium and VIX The U.S. equity risk premium remains above its long-term average, but the risk-adjusted return of equity has dropped below its long-term avearge this year. Image: Societe Generale Cross Asset Research/Global Asset Allocation

Bull-Bear GDP Growth Forecasts

Bull-Bear GDP Growth Forecasts The bull case scenario consists of a more accommodative fiscal policy and a faster return to normal with a vaccine broadly available more quickly. Image: Morgan Stanley Research

S&P 500 Performance from Inauguration Day

S&P 500 Performance from Inauguration Day Chart showing the S&P 500 performance across different presidencies, from Ronald Reagan to Donald Trump. From 1928 to 2019, S&P 500 annual returns were positive 72% of the time. Image: Financial Times

Five Largest Stocks vs. S&P 500

Five Largest Stocks vs. S&P 500 The five largest stocks have returned +39% YTD, while the remaining 495 stocks have returned -1%. Image: Goldman Sachs Global Investment Research