Gold is Uncorrelated to World Equity Since 1988, the correlation between gold and world equity has been only 3%. The 10-year rolling correlation has been between -10% and 10% over the past 20 years. Image:…

Best First Half for U.S. Equities and U.S. Bonds since 1995 Since 1995, it is the best first half for U.S. equities and U.S. long bonds, despite the challenge of low bond yields. Image: Financial…

Dow Jones Transportation Average vs. S&P 500 This interesting chart suggests that the Dow Jones Transportation Average underperforms in secular bull markets. Actually, the S&P 500 had higher returns when the Dow Jones Transportation Average…

U.S. Yield Curve and Growth/Value P/E Ratio The chart below shows that the shape of yield curve explains nearly 50% of the variation in value vs. growth multiples. Actually, when the U.S. economy is sluggish,…

Will Value Ever Outperform Growth? When the U.S. economy is weak, investors prefer growth stocks. But value could outperform again, when the U.S. economy will be stronger. Image: Ned Davis Research

S&P 500 1-Year Volatility vs. EPS Revisions This chart from SG shows a good correlation between earning revisions and the S&P 500 1-year volatility. You may also like “S&P 500 1-Month Volatility History Since 1928…

Warning Signs of the Next Financial Crisis Some vulnerabilities in the global economy pose a risk for investors and could amplify the next financial crisis. Image: International Monetary Fund

Value of U.S. Corporate Bonds by Rating Since the Great Recession, the U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. If the U.S. economy goes wrong, this is bad news for investors. Image: The…

Global Yield Curves Global flattening yield curves sound the alarm about the economic outlook. Image: Capital Economics

S&P 500 Cash Return Yield by Sector and Region Currently, the S&P 500 cash return yield (buybacks + dividends) is 5.2%, the highest since 2011. That’s much more than Europe, Japan and emerging markets. Image:…

Increased Tariffs Between the U.S. and China: Is It Bad or Good for the U.S.? The survey shows the huge gap between Republicans and Democrats. Image: The New York Times Company