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S&P 500 and Pullbacks While pullbacks can be challenging, historical data indicates that the S&P 500 tends to recover and move higher in the months following a 5% pullback. Image: Goldman Sachs Global Investment Research

Valuation – S&P 500 Forward P/E Investors are willing to pay a premium for mega-cap tech stocks, which are priced higher than the overall market due to their strong growth potential and market dominance. Image: Goldman Sachs Global Investment Research

S&P 500 EPS Beat Although beating EPS estimates is generally viewed favorably, consumer discretionary stocks haven’t shown substantial positive movement the day after the release of better-than-expected earnings. Image: Goldman Sachs Global Investment Research

Flows into Global Equity Funds Flows into global equity funds have accelerated in recent weeks, reflecting a growing appetite for riskier investments. Image: Goldman Sachs Global Investment Research

Risky vs. Safe Assets Fund Flows Positive fund flows into risky assets, as opposed to safe assets, indicate a broader market sentiment in which investors are willing to accept higher risks for potential gains. Image: Goldman Sachs Global Investment Research

Price Performance Despite high valuations and potential market corrections, the S&P 500’s current trajectory, bolstered by strong earnings and favorable economic conditions, suggests continued outperformance in the near term. Image: Goldman Sachs Global Investment Research

Contributions to U.S. GDP Growth Goldman Sachs predicts a 2.2% Q4/Q4 expansion in U.S. GDP for 2024, surpassing consensus estimates and highlighting the economy’s resilience. Image: Goldman Sachs Global Investment Research

Investment Grade (IG) Spread According to Goldman Sachs, Investment Grade (IG) spreads are expected to remain virtually unchanged over the next 12 months. Image: Goldman Sachs Global Investment Research

Performance – MSCI China vs. MSCI EM China’s performance relative to emerging markets has closely correlated with Trump’s implied winning probability in the prediction market. Image: Goldman Sachs Global Investment Research

10-Year/2-Year Treasury Yield Curve Around First Fed Rate Cuts The U.S. yield curve typically steepens once the prospect of interest rate cuts by the Fed becomes more imminent, rather than when the Fed actually stops hiking rates. Image: Goldman Sachs Global Investment Research