Valuation – Nasdaq 100 Fwd P/E

Valuation – Nasdaq 100 Fwd P/E Tech stocks are priced at a premium, with forward valuations significantly above their 10-year average. This rich valuation assumes technology companies will maintain their earnings leadership. Image: Bloomberg

Valuation – Price-to-Forward Earnings Ratios

Valuation – Price-to-Forward Earnings Ratios The U.S. stock market maintains a premium valuation compared to global markets, with the exception of India, leaving little room for error as it’s priced for perfection. Image: Goldman Sachs Global Investment Research

S&P 500 vs. S&P 500 Equal-Weight

S&P 500 vs. S&P 500 Equal-Weight The S&P 500 cap-weighted index return premium has reached extreme levels. Should investors now favor the S&P 500 equal-weighted index over the cap-weighted index? Image: Morgan Stanley Wealth Management

Valuation – S&P 500 Normalized P/E Ratio

Valuation – S&P 500 Normalized P/E Ratio At 22x, the S&P 500 is currently trading over 40% above the long-term average, which suggests that investors are willing to pay a premium for stocks in the index. Image: BofA US Equity & Quant Strategy

10-Year U.S. Treasury Yield Less CPI

10-Year U.S. Treasury Yield Less CPI Given investors’ historic tendency to demand a 200 basis point premium over inflation rates, could rates rise further? Image: Morgan Stanley Wealth Management

U.S. Rates

U.S. Rates Chart showing the dramatic plunge in interest rates over the past 10 months. On the positive side, the equity risk premium (ERP) is now higher. Image: Fidelity Investments