Magnificent 7 vs. S&P 493 Relative Return While the Magnificent Seven are expected to continue performing well, their relative outperformance compared to the S&P 493 is projected to be only 7% in 2025, indicating a potential shift in market leadership. Image: Goldman Sachs Global Investment Research
Asset Class Returns This year’s substantial variation in performance emphasizes the importance of rebalancing portfolios, given that strong gains in some sectors have resulted in elevated valuations that may be prone to pullbacks. Image: J.P. Morgan Asset Management
S&P 500 Index Max Pullback per Calendar Year Bulls should stay vigilant, as the S&P 500’s 8.5% peak-to-trough pullback this year is well below the historical average of 14.2% annual corrections since 1980, raising concerns about potential corrections in 2025. Image: Carson Investment Research
S&P 500 Price Target Strategists tracked by Bloomberg expect a favorable environment for the S&P 500 in 2025, predicting continued growth, with forecasts ranging from steady performance to a target of 7,100, indicating a potential 19% rally. Image: Bloomberg
Forward P/E Ratio and Subsequent 5-Year Annualized Returns Current high valuations in the U.S. stock market indicate that investors may face lackluster returns over the next decade, leaving them feeling like a cat stuck in a tree—confused, anxious, and hoping for a miracle! Image: J.P. Morgan Asset Management
ISABELNET Cartoon of the Day While bears are busy counting their losses, those who dared to ride the S&P 500 wave are enjoying a hefty 26.9% return YTD, including dividends! It’s safe to say that this bull market is no joke—unless you’re a bear! Have a Great Week, Everyone! 😎
Bonds Flows Since January 2024, there has been a notable trend of strong inflows into bond ETFs, particularly high-yield bonds, driven by favorable yield conditions and an overall “risk-on” sentiment in the market. Image: J.P. Morgan
Performance – Banks vs. S&P 500 Index and Nasdaq 100 Index In 2024, bank stocks have significantly outperformed major indices like the S&P 500 index and Nasdaq 100 index, driven by optimism regarding potential deregulation that may ease capital rules for banks. Image: Bloomberg
U.S. Stocks Returns during Year One of a President’s Second Term The performance of U.S. stocks during the first year of a second presidential term has shown mixed results historically, but recent trends suggest a more favorable outlook. Image: Carson Investment Research
S&P 500 Fwd. Earnings Growth and Russell 2000 Fwd. Earnings Growth The recovery in EPS growth has been driven by a small number of large-cap companies, which may indicate a late-cycle extension in the economic cycle. Image: Morgan Stanley Research
Big Tech Capex Outlook Big Tech companies are poised for a significant increase in capital expenditures over the next few years, primarily driven by the growing demand for artificial intelligence infrastructure. Image: Alpine Macro