U.S. M2 to Nominal GDP Ratio The return of the U.S. M2 to nominal GDP ratio to its long-term trend is a positive indicator. It reflects a healthier balance between money supply and economic output, fostering stability and sustainable growth in the economy. Image: Federal Reserve Bank of St. Louis
Global Debt as % of GDP Over the past 25 years, the global debt-to-GDP ratio has risen significantly, driven by major economic events like the 2008 financial crisis and the COVID-19 pandemic. Image: Deutsche Bank
U.S. Small-Cap Stocks – Russell 2000 The small-cap Russell 2000 index has faced a notable downturn in December 2024, experiencing a decline of over 8%. This marks its worst monthly performance since September 2022, reflecting a notable shift in investor confidence. Image: Bloomberg
Annual Return of Treasuries – T-bills In 2024, U.S. Treasuries have once again underperformed cash, resulting in a challenging year for bond investors. Many investors have found more appealing opportunities in cash savings or other asset classes. Image: Bloomberg
S&P 500 Gains of 20% Happen More Than Losses Since 1950, the U.S. stock market has seen more years achieving gains of 20% or more than those with losses. This encourages investors to keep a long-term perspective and avoid panic selling—both crucial for building wealth. Image: Carson Investment Research
Seasonality – S&P 500 Monthly Returns The performance of the U.S. stock market in January is often considered as a key indicator for the year ahead. Although January’s stock returns can seem erratic, the median return has been around 1.5% since 1950. Image: Goldman Sachs Global Investment Research
Developed Market Core Inflation Rates In most major economies, inflation rates have significantly eased. While challenges remain, current trends suggest that inflationary pressures are gradually coming under control. Image: Goldman Sachs Global Investment Research
S&P 500 Performance vs. Forward EPS While long-term earnings are essential for driving stock prices over time, the influence of rising long-term yields cannot be overlooked. Image: Evercore ISI
ISABELNET Cartoon of the Day Bears are more fed up with 2024 than cats are with baths—and now they’re chasing bulls like it’s a New Year’s resolution! Happy New Year, Everyone! 😎
Average Performance on Major Geopolitical Events Investors regard gold as both a hedge against inflation and a strategic asset during geopolitical uncertainty, having proven to be the most effective safeguard against major geopolitical events since 1973. Image: Alpine Macro
Cumulative Flows from Global Investors into DM and EM funds In 2024, equity funds in developed and emerging markets have experienced substantial inflows from global investors, reflecting a resurgence of confidence in the market. Image: Goldman Sachs Global Investment Research