Search Results for: cash flow

Record Money Market Fund Inflows Money market funds get record inflow, as investors flood into the safety of cash. Image: BofA Global Investment Strategy

U.S. Fund Flows Cumulative Since 2018 Fear of a recession has led to a record equity outflows and bond & cash inflows in recent years. Image: Goldman Sachs Global Investment Research

U.S. Fund Flows Chart showing the large divergence between flows into equity funds and those into cash and bonds. Image: Goldman Sachs Global Investment Research

Money Market Fund Flows and Probability of Recession Investors move to safe assets by raising their cash holdings, like 2007/2008. This chart suggests that the probability of a recession in the next 12 months is high. Image: Goldman Sachs Global Investment Research

S&P 500 Operating Margin After the COVID-19 pandemic, the operating margins of companies in the S&P 500 have returned to a state of normalcy, leading to a positive trend of improved profitability and cash flows for these companies. Image: Morgan Stanley Wealth Management

S&P 500 vs. Top 10 Investors can benefit from the currently wide valuation dispersion by focusing on low beta stocks that have stable cash flows and strong balance sheets. Image: J.P. Morgan Asset Management

Cross-Asset Valuation for the U.S. On an absolute basis, equities look expensive by historical standards, but relative valuations appear attractive, as free cash flow yield and ERP look cheap. Image: Goldman Sachs Global Investment Research

Does Quantitative Easing Affect Valuation? More fundamentally, low interest rates, high margins, low taxes, buybacks & free cash flow drive stocks higher. Image: Fidelity Investments

S&P 500 Payout Ratio Stock buybacks and dividends as a percentage of free cash flow are reaching dangerous levels. Image: MarketWatch

Why Lower Bond Yields Influence the S&P 500? Because lower interest rates push stock market multiples higher.  If interest rates are lower, then the value of future cash flows increases, because future cash flows are discounted back at a lower interest rate. So, lower U.S. 10-year yields influence the stock market equity risk premium. On the other…

Aswath Damodaran – Laws of Valuation: Revealing the Myths and Misconceptions Aswath Damodaran is professor of corporate finance at the Stern School of Business at New York University, with his unique perspective about equity valuation. Here, he talks about the corporate life cycle, corporate finance, cash flow and the laws of valuation. https://www.youtube.com/watch?v=c20_S-QgvsA