Valuation – S&P 500 Forward P/E At a forward P/E multiple of 20x, the S&P 500 is trading at the low end of the trading range, which is below its 12-month average of 21x. Image:…

Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors With investor allocation to equities at an all-time high, the market faces increased vulnerability to volatility and substantial losses, especially in the…

ISABELNET Cartoon of the Day Bulls ran wild on Wall Street after the S&P 500’s meteoric 0.51% rise this week, prompting calls for a new economic era, while bears are desperately Googling “how to sell…

VIX Term Structure Curves Market participants seem to expect a sharp decline in volatility after the April 2nd tariff deadline, reflecting hopes for reduced uncertainty and stabilization of trade-related concerns impacting markets. Image: Fundstrat Global…

ACWI Ex-U.S. vs. U.S. 3-Month Correlation and U.S. Equity 3-Month Return When U.S. equities experience a sell-off, it often indicates underlying worries about the global economy or financial system, triggering risk aversion. This typically leads…

Market Capitalization of the Largest Stock Relative to the 75th Percentile Stock The U.S. equity market is experiencing historically high levels of concentration, primarily driven by the dominance of a small group of mega-cap tech…

U.S. Weight in Bloomberg World Index America’s weight in the Bloomberg World Index has fallen from its peak of 65% in November to 63% recently, reflecting growing caution among investors toward the U.S. market. Image:…

ISM Composite Index vs. Recessions While indicating slower growth, the economically weighted ISM composite index still points to expansionary conditions in the U.S. economy, without signaling an impending recession. Image: Real Investment Advice

S&P 500 Corrections and Bear Markets Market corrections don’t always lead to bear markets. In fact, historical data shows that only 13 of the past 39 corrections transitioned into bear markets, giving bulls reason to…

Number of Calendar Days the Correction Lasted for the S&P 500 S&P 500 corrections have varied significantly since 1928. The average correction lasts 185 days, with a median of 52 days. Interestingly, in 10 of…

Average S&P 500 Performance Around Bear Markets and Corrections The S&P 500’s recent sell-off has been notably sharper compared to the average bull market correction, aligning more closely with the characteristics of an average bear…