Global Market Capitalization of All Equities The United States’ share of the global equity market has hit a record 66% of total capitalization, reinforcing Warren Buffett’s famous assertion: “It never pays to bet against America.” Image: BofA Global Investment Strategy
Valuation – Price-to-Book Ratio – MSCI Japan Index vs MSCI ACWI ex Japan Index Warren Buffett’s positive view on Japanese stocks has raised the question of whether it is the right time to consider investing in them. Image: Morgan Stanley Wealth Management
Valuation – Wilshire 5000 as a Percent of GDP Warren Buffett’s favorite valuation metric remains high despite the recent sell-off. Image: Morgan Stanley Wealth Management
Long-Term U.S. Government Bond Quarterly Total Returns With low interest rates and inflation on the horizon, is Warren Buffett right to be bearish on bonds? Image: Financial Times
Bank to IG Index Spread Ratio and Bank to S&P 500 Ratio Are U.S. bank stocks a buying opportunity, despite Warren Buffett’s selloff? Image: Goldman Sachs Global Investment Research
Berkshire Hathaway Annual Return Minus the Total Return of the S&P 500 Heavy on banks, but light on tech. Has Warren Buffett lost his mojo? Image: Financial Times
S&P 500 Total Return During Pre-Election Years “What we learn from history is that people don’t learn from history. And you certainly see that in financial markets all the time.” –Warren Buffett Image: Ryan Detrick, LPL Financial LLC
Stocks, Bonds, Bills, and Inflation since 1926 Great chart showing the hypothetical value of $1 invested in stocks, bonds, and bills, at the beginning of 1926. Warren Buffett is right when he says that stocks are generally better than bonds. Picture souce: Morningstar
Earnings Matter, Over the Long Run Over the long run, equities move with earnings. Currently, there is a big gap between U.S. and Europe earnings. As Warren Buffett said: “for 240 years, it’s been a terrible mistake to bet against America.” You may also like “Global Earnings since 2006.” Image: Cullen Roche
Global Earnings since 2006 This chart shows global earnings since 2006 (USA, Emerging Markets, Japan and Europe). As Warren Buffett said: “for 240 years, it’s been a terrible mistake to bet against America.” This chart below illustrates it well since 2006. You may also like “Earnings Matter, Over the Long Run.” Source: J.P. Morgan Asset Management
Estimated Number of Hedge Funds Launched or Closed since 2008 Can hedge funds deliver higher returns than passive investing? Not really. But many investors still think they can achieve higher returns with active trading than with passive investing. The chart below shows that it is really hard to outperform the market. As Warren Buffett said,…