Russell 2000 Net Futures Contracts The current net long positioning of asset managers and leveraged funds in Russell 2000 futures indicates a strong belief in the potential for growth in U.S. small-cap stocks. Image: Deutsche Bank Asset Allocation
Probability of Negative Returns, Based on S&P 500 Total Returns from 1929-Present Extending the investment time horizon allows investors to minimize U.S. equity losses, navigate short-term market fluctuations, and leverage the long-term growth potential of equities. Image: BofA US Equity & Quant Strategy
S&P 500 vs. Margin Debt Margin debt boosts market gains as investors leverage to increase buying power. The recent rise in margin debt confirms exuberance and raises worries of a market correction. Image: Real Investment Advice
Nasdaq 100 Net Long Futures Contracts Leveraged funds and asset managers have different positions on Nasdaq 100 futures. Leveraged funds are currently very net short on Nasdaq 100 futures, while asset managers have a less bullish but still net long position. Image: Deutsche Bank Asset Allocation
Nasdaq 100 Futures Positioning While leveraged funds and asset managers are less bullish on Nasdaq 100 futures, they still maintain a net long position. Image: Deutsche Bank Asset Allocation
S&P 500 Net Long Futures Contracts Despite some profit-taking, asset managers and leveraged funds remain very net long S&P 500 futures, suggesting their positive outlook on the future performance of the U.S. stock market. Image: Deutsche Bank
Net Free Credit and the S&P 500 Should equity investors worry about high leverage? Image: BofA Global Research
Top 5 vs. S&P 500 ex-Top 5 – YoY Contribution of EPS and P/E to Returns The performance gap could widen further, as the top 5 largest stocks in the S&P 500 are superior on almost every financial metric (revenue, profit growth, margin structure, volatility and corporate leverage). Image: Credit Suisse Research
Households and Corporations Debt to GDP and Total Fed Holdings Since the Great Financial Crisis, the private sector has de-leveraged, while the Fed’s balance sheet has risen sharply. Image: Goldman Sachs Global Investment Research
Zombie Companies on the Rise Investor demand for leveraged loans and artificially low interest rates have created zombie firms. Image: Quick Factset
Increased Number of Zombie Companies Artificially low interest rates and investor demand for leveraged loans have created zombie firms. Image: Jupiter Asset Management