Equity Positioning Across Sectors Should investors anticipate a rotation in positioning into sectors outside of mega cap growth and tech, in line with increasing sentiment to diversify holdings? Image: Deutsche Bank Asset Allocation
Performance – Large Cap vs. Small Cap The durability of the rotation from U.S. large caps to U.S. small caps remains to be seen as the market assesses the implications of changing inflation and rate expectations. Image: Goldman Sachs Global Investment Research
12-Month Rolling Money Market In/(Out)Flows vs. NY Fed 12-Month Ahead Yield Curve Implied Recession Probability The probability of a U.S. recession can significantly influence investor behavior, potentially leading to a rotation out of money markets if the likelihood of a recession diminishes. Image: Goldman Sachs Global Investment Research
Indexed Return of Cyclicals vs. Defensives ex. Commodities and ISM Manufacturing Index Equity industry rotations are pricing in a soft landing. Image: Goldman Sachs Global Investment Research
Market – Biotech ETF vs. Energy ETF (Price Relative) Will the rotation from inflation to deflation assets continue? Image: BofA Global Investment Strategy
Total Equity Flows Minus Bond Flows and U.S. 10-Year Yield Will the rotation in fund flows from bonds to equities continue? Image: Deutsche Bank Asset Allocation
S&P 500 Value Index/S&P 500 Growth Index vs. 30-Year Treasury Yield The direction of long-term interest rates tends to drive the style rotation. Image: Morgan Stanley Wealth Management
Value Stocks – U.S. 10-Year Treasury Yield and U.S. Value / U.S. Growth Is the value rotation in the U.S. stock market over? Image: Gavekal, Macrobond
Tech Stocks – Nasdaq vs. S&P 500 and U.S. 10-Year Real Rates The rotation out of tech stocks has continued despite lower real rates. Image: Goldman Sachs Global Investment Research
Emerging Market Stocks – EM Consumer Discretionary + Tech vs. EM Energy + Materials This chart highlights the secular rotation from healthcare/tech to energy/financials. Image: BofA Global Investment Strategy
S&P 500 Pure Value/Pure Growth Index and 5-Year U.S. Treasury Breakeven Rate The 5-year U.S. Treasury breakeven rate tends to drive the rotation from growth stocks to value stocks. Image: Morgan Stanley Wealth Management