Strong vs. Weak Balance Sheet Stocks Forward P/E Ratio and CCC/BB OAS Ratio Quality in U.S. credit and equity markets is very expensive. Image: Goldman Sachs Global Investment Research
Local Currency Returns and Return to Vol Ratios in YTD 2019 Chart showing what investors should have bought this year. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Forward P/E Multiple Since October 2025, the S&P 500’s forward P/E has compressed from 23 to 19, not because prices fell but because earnings estimates rose. Valuations have cooled from their highs, but stocks are still far from a bargain. Image: Goldman Sachs Global Investment Research
MSCI World Sector/Style Valuations Valuations are rich across sectors and styles, leaving investors with almost no cushion. A slight turn in mood could push prices lower, with few supports below. Image: Goldman Sachs Global Investment Research
Fed Funds Rate Path Implied by the Median Dots The Fed is signaling higher rates for longer, with a two-hike baseline for 2026, a 2029 median fed-funds rate of 3.5% to 3.75%, and a neutral rate of 3.25%. Long-duration assets and leveraged trades are now facing a tougher road. Image: Goldman Sachs Global Investment Research
U.S. Household Equity Ownership by Wealth Percentile Call it the American Dream or a widening divide. The top 1% now hold about half of U.S. market wealth. The bottom half? Just 1%. The gap has been widening since 1990, and frustration is rising with it. Image: Goldman Sachs Global Investment Research
Relative Total Return Performance S&P 500 Momentum vs. Low Volatility Stocks The ratio of S&P 500 momentum to low volatility stocks is nearing Tech Bubble peaks, pointing to a tech-fueled late cycle. The trend can extend, but it also heightens the risk of a more abrupt downside if that leadership falters. Image: Goldman Sachs Global…
Weight of Top 10 Positions in Median Hedge Fund Long Portfolio Hedge fund portfolio density is now at 72% and holding firm, with greater concentration in top 10 positions. Such concentration leaves markets vulnerable to sharp swings if popular trades begin to reverse. Image: Goldman Sachs Global Investment Research
% of Companies with Revenue Exposure to Just One Sector (TOPIX 500, MXAPJ, STOXX 600, S&P 500) The S&P 500 shows a striking level of concentration, with 61.1% of its companies relying on a single sector for revenue, leaving the index more exposed to shocks. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Forward P/E Multiple Strong profits haven’t lifted valuations: the S&P 500’s P/E has narrowed as investors weigh geopolitical uncertainty and renewed oil price volatility. Sometimes solid results aren’t enough when risk appetite fades. Image: Goldman Sachs Global Investment Research
LME Copper Copper surged on shrinking supply and a weaker dollar, with investors wagering that demand from factories, clean energy, and AI will stay strong despite limited mine output. Image: Bloomberg