Category: Blog

S&P 500 Equity Risk Premium With the S&P 500 equity risk premium hitting multi-decade lows, investors may find bonds more appealing than stocks. Image: Goldman Sachs Global Investment Research

Weight of Top 10 Holdings in Each Country’s ETF Concerns about U.S. stock market concentration, especially among the top 10 stocks, have grown. However, a broader comparison with other major economies suggests that the U.S. market may not be as top-heavy as perceived. Image: Carson Investment Research

S&P 500 Performance by Prior Year >10% and First 5 Days of January Performance The S&P 500 has historically shown strong performance following years of double-digit gains, when the first five trading days of the new year are positive. Image: Fundstrat Global Advisors, LLC

Valuation – S&P 500 CAPE Ratio While a high CAPE ratio typically suggests lower expected long-term returns, it does not guarantee immediate market corrections. Currently, there are no signs of an economic downturn. Image: Deutsche Bank

ISABELNET Cartoon of the Day Even in a bull market, where the S&P 500 gained 0.55% yesterday, it seems bears have opted for a long vacation rather than hibernation! Have a Great Day, Everyone! 😎

U.S. Economic Surprise Index A rising U.S. Economic Surprise Index is often associated with positive equity performance due to enhanced investor sentiment and expectations of continued economic growth. Image: Goldman Sachs Global Investment Research

Equity Sector Returns While large-cap growth stocks, particularly those in the Magnificent 7, performed strongly in 2024, there was also a significant shift toward value sectors throughout the year, reflecting broader economic resilience. Image: J.P. Morgan Asset Management

Copper to Gold Ratio and U.S. 10-Year Treasury Yield (Leading Indicator) The copper/gold ratio and the 10-year U.S. Treasury yield are showing signs of a persistent divergence. Image: Morgan Stanley Research

S&P 500 Annual Returns Bulls rejoice when the S&P 500 posts a 20% annual return. Historically, the following year has seen positive returns 81% of the time, with an average gain of 10.6% since 1950. Image: Carson Investment Research

Gold While the outlook for gold remains bullish due to falling interest rates and sustained central bank purchases, it is currently viewed as expensive when compared to oil prices and the average wage of a U.S. worker. Image: Gavekal, Macrobond

ISABELNET Cartoon of the Day The S&P 500 is currently expensive, but trying to time the market based on valuations is like using a sundial at midnight—good luck with that! Still, bears are eager to sell stocks! Have a Great Week, Everyone! 😎