Demographics – Labor Force Growth and Term Premium Chart suggesting that growth in the labor force could explain the term premium. The term premium is the risk premium (or the bonus) that investors receive for the risk of owning longer-term bonds. Image: Fidelity Investments
U.S. Equity Fund Flows vs. Bonds and Cash This chart puts into perspective the rotation from equities to bonds and cash, as investors become cautious about further growth. Image: Goldman Sachs Global Investment Research
Returns Per Asset Class in YTD 2019 This chart shows what investors should have bought in 2019. Image: Deutsche Bank Global Research
Passive Over Active Funds History suggests that investor outflows from active funds are smallest after periods of high policy uncertainty. Image: Goldman Sachs Global Investment Research
Emerging Market Valuations Chart suggesting that emerging market valuations are not cheap for bargain investors. Image: J.P. Morgan
60/40 Portfolio Annual Returns A 60/40 portfolio has delivered an annualized return of 10.15% since 1976, with positive returns in 35 of 43 years. But the coming years may be more challenging, because investors may face a period of lower returns. Image: Ritholtz Wealth Management LLC
Fears of Global Recession The latest BofAML’s European credit investor survey shows that fears of global recession have risen to 42%. Image: BofA Merrill Lynch
Who Owns the U.S. Treasury Market? American institutions and individual investors are big holders. A large part of the treasury market is also owned by foreigners. Image: Bianco Research
Cumulative Fund Flows: Global Equities and Global Government & Corporate Bonds $339 billion in inflows to bond funds globally, and $208 billion in outflows from global equity funds in 2019, as investors fear a global recession is on the horizon. Image: BofA Merrill Lynch
Money Market Fund Flows and Probability of Recession Investors move to safe assets by raising their cash holdings, like 2007/2008. This chart suggests that the probability of a recession in the next 12 months is high. Image: Goldman Sachs Global Investment Research
FAANG Stocks vs. S&P 500 Investors opt for safer stocks rather than FAANG stocks. Image: Financial Times