Gold Reserves As % of Total Holdings Emerging market central banks continue to hold significantly less gold than their developed counterparts, suggesting a potential for increased future allocations that could provide sustained support for gold prices. Image: Goldman Sachs Global Investment Research
SPDR S&P 500 ETF Trust Three-Month 90/110 Implied Volatility Signs of stability are emerging in the S&P 500 Index after the sharp correction, as traders abandon bets on further significant declines, reflecting growing confidence in the market. Image: Bloomberg
MSCI Ex-US Developed World Stock Price Index Relative to MSCI US Stock Price Index vs. US Real Dollar Index There is often an inverse relationship between the U.S. dollar and international stock markets, meaning that a peak in the dollar could make international stocks more appealing to investors. Image: Paulsen Perspectives
Magnificent Seven’s YoY Earnings Growth The Magnificent Seven’s earnings growth is slowing, while emerging technologies like DeepSeek underscore the importance of diversifying beyond these tech giants. Image: Bloomberg
Cumulative Flows from Global Investors into DM and EM funds In 2024, equity funds in developed and emerging markets have experienced substantial inflows from global investors, reflecting a resurgence of confidence in the market. Image: Goldman Sachs Global Investment Research
Proportion of Companies Beating Earnings Estimates In the third quarter of 2024, U.S. companies outperformed their counterparts in Europe, Japan, and emerging markets, with a higher percentage exceeding earnings estimates. Image: Deutsche Bank Asset Allocation
Share of U.S. Corporate Profits from Foreign Markets Foreign markets, including emerging markets, significantly contribute to the profits of U.S. corporations. Specifically, they account for 16% of U.S. corporate profits, with emerging markets making up 4% of these profits. Image: Goldman Sachs Global Investment Research
Interest Rates – Central Bank Policy Rate Hikes vs. Cuts Emerging market central banks typically take the lead in initiating monetary tightening and easing cycles. In 2024, their approach has shifted away from aggressive easing. Image: BofA Global Investment Strategy
EM Debt Flows Outflows from emerging market debt persist, indicating a sustained trend of movement away from this financial asset. Image: BofA Global Investment Strategy
Global Equities – MSCI AC World Mid- and Large-Cap Index Are emerging market equities poised for continued growth? Image: Gavekal, Macrobond
EM/DM Relative Performance vs. U.S. Dollar The strength of the U.S. dollar can affect the relative performance of EM/DM equities. A weak U.S. dollar has historically led to outperformance of emerging market equities. Image: BofA Global Investment Strategy