Real S&P 500 Index and Periods to Breakeven The timing of your investment journey can significantly impact your future outcomes, and even with the Fed’s interventions, recovering from a bear market can take a considerable amount of time. Image: Real Investment Advice
Weekly Equity Fund Flows Equity funds seeing $82 billion inflows over the past 10 weeks indicates the strong confidence investors have in the potential returns in equity markets. Image: BofA Global Investment Strategy
Time Series of the S&P 500, Highlighting Periods of Stress and Response from Central Banks Post the 2013 Taper Tantrum, the interventions by central banks during market dips provided buying opportunities for investors to generate excess returns, rather than reasons to panic or sell off their investments. Image: BofA Global Research
Valuation – MSCI U.S. Forward 12-Month Price/Earnings Ratio vs. 10-Year U.S. Treasury Real Yield While rising real yields have historically been associated with a decrease in stock market performance, the U.S. equity market has showcased its resilience by delivering impressive returns this year. Image: Morgan Stanley Wealth Management
Real S&P 500 and Real GDP The excesses of the U.S. stock market tend to correct themselves over time. Image: Real Investment Advice
VIX Index and VIX Futures (Noncommercial Net Long) Even though the VIX is retreating, investors still expect volatility to return to the market. Image: Morgan Stanley Wealth Management
Valuation – Defensive Assets vs. Assets More Sensitive to the Economy Valuations suggest that we’re a long way from a return to normal times, as the market remains concerned about long-term growth. Image: Morgan Stanley Research
Correlation Between S&P 500 Index and MSCI EAFE Index Since 1997, the high correlation between U.S. and international equity markets suggests that the MSCI EAFE may only offer a slight risk/return benefit as a complement to a U.S. equity portfolio. Image: First Eagle Investment Management, LLC
U.S. Equities and The World: Earnings Growth vs. Multiple Expansion Since the 2009 low, the strong performance of the U.S. markets comes from earnings growth (73%) and multiple expansion (27%). You may also like “S&P 500 Return: Earnings Growth vs. Multiple Expansion.” Image: Goldman Sachs Global Investment Research
Dow Jones Transportation Average vs. S&P 500 This interesting chart suggests that the Dow Jones Transportation Average underperforms in secular bull markets. Actually, the S&P 500 had higher returns when the Dow Jones Transportation Average experienced negative momentum. Image: Oppenheimer & Co.