Valuation – S&P 500 Operating Earnings Per Share If companies are able to maintain their profit margins, the forward P/E ratio of the S&P 500 could fall to 20.1x by 4Q22. Image: J.P. Morgan Asset Management
Gold Price Performance – Day vs. Night Like the S&P 500, Gold also loves the night. Since 2006, the real profits have been made outside regular trading hours. Image: Lohman Econometrics
SPY S&P 500 ETF – Day vs. Night Price Returns The S&P 500 loves the night. Since 1993, the real profits have been made outside regular trading hours. Image: Lohman Econometrics
S&P 500 Sectors’ Relative Performance Sensitivity to Real Rates Can higher rates boost financials by increasing profit margins? Image: BofA US Equity & Quant Strategy
S&P 500 Sectors’ Relative Performance Sensitivity to Real Rates Financials benefit from higher rates, as profit margins expand. Image: BofA Global Research
S&P 500 Price, Sales, EPS and GDP S&P 500 profits have exceeded their pre-pandemic level. 4Q 2020 EPS came in 2% above 4Q 2019. Image: Goldman Sachs Global Investment Research
S&P 500 Growth Index and Percent of IPOs with Negative EPS Growing signs of speculation and optimism, as more unprofitable companies are going public. Image: Alpine Macro
IPO Market in the U.S. The U.S. IPO market heats up in 2020, but more unprofitable companies are going public. Image: Bloomberg
Style Index Performance During Periods of Decelerating and Accelerating S&P 500 Earnings Growth – Russell 1000 Value vs. Growth Is it time for investors to favor value stocks, as Value tends to beat Growth when profits accelerate? Image: BofA US Equity & Quant Strategy
China Stocks – New Economy Relative to Old Economy China’s new economy stocks featured higher profitability and revenue growth. Image: Morgan Stanley Research
Banks and U.S. Real Yields Banks suffer from low real yields, as it is more difficult for them to make a profit from lending. Image: Bloomberg