Category: Blog

ISABELNET Cartoon of the Day Wall Street’s optimism is so high that even gravity seems bullish. As a result, bears are experiencing altitude sickness from the market’s rapid rise! Have a Great Day, Everyone! 😎

Average Probability S&P 500 Volatility Regime The probability of a high S&P 500 volatility regime has increased, suggesting that elevated volatility could persist throughout 2025. Image: Goldman Sachs Global Investment Research

Global Economy – GDP Growth Projections The International Monetary Fund projects global economic growth of 3.3% for both 2025 and 2026, suggesting economic resilience despite ongoing challenges. Image: International Monetary Fund

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 Index Since its October 2022 low, the S&P 500 has seen substantial gains, largely driven by big tech companies. However, concerns are emerging about potential underperformance of these tech giants in 2025. Image: Bloomberg

S&P 500 Pre and Post Fed Rate Cuts Historically, U.S. stocks have shown strong performance in the two years following the start of a Fed rate cut cycle, especially during nonrecessionary periods. Image: Goldman Sachs Global Investment Research

Truck Tonnage vs. S&P 500 Index The Truck Tonnage Index decreased 1.1% in December. Trucks represent 72.6% of U.S. freight and serve as a barometer of the U.S. economy. This chart shows that the U.S. stock market tends to increase in line with the physical size and expansion of the U.S. economy (R² = 0.77…

Equity Sectoral and Regional ETF Flows Materials, energy and healthcare ETFs are still experiencing notable outflows, leading to a decrease in investor interest. Image: J.P. Morgan

Valuation – S&P 500’s CAPE Ratio and U.S. GDP Growth The S&P 500’s CAPE ratio is currently high relative to U.S. GDP growth, potentially indicating lower expected returns in the future. Image: Deutsche Bank

ISABELNET Cartoon of the Day With Bitcoin surpassing $100,000, bulls are so long on Bitcoin, they’re flying to the moon and beyond, leaving bears in despair! Have a Great Day, Everyone! 😎

The Conference Board Leading Economic Index (LEI) for the U.S. The marginal 0.1% decline in the U.S. Leading Economic Index for December continues to indicate a positive economic trajectory. Image: The Conference Board