S&P 500, U.S. 10-Year Government Bond Yield and Blended Expected Growth Rate of S&P 500 Operating EPS The S&P 500 is vulnerable to higher yields or disappointing economic activity. Image: BCA Research
Valuation – Real 10-Year Yield vs. S&P 500 PE on Trailing Operating EPS The S&P 500 P/E tends to rise when the real 10-year yield declines. A S&P 500 P/E of 26x and 2021 EPS of $148 suggest ~3,800 for the S&P 500. Image: Stifel
U.S. Election – President’s Approval Rating vs. U.S. Unemployment Rate at the End of First Term President Donald Trump’s approval rating is in line with the U.S. unemployment rate. Image: J.P. Morgan
Style Index Performance During Periods of Decelerating and Accelerating S&P 500 Earnings Growth – Russell 1000 Value vs. Growth Is it time for investors to favor value stocks, as Value tends to beat Growth when profits accelerate? Image: BofA US Equity & Quant Strategy
S&P 500 YTD Returns by Credit Rating Chart showing the impact of credit ratings on stock returns since the beginning of the year. Image: BofA Research Investment Committee
Number of S&P Non-Financial Credit Ratings Global creditworthiness fades as companies embrace debt. Triple-A ratings are a thing of the past. Image: Financial Times
Operating Leverage Contribution and Earnings Rebound Morgan Stanley expects operating leverage to fuel an earnings rebound, through aggressive cost-cutting measures. Image: Morgan Stanley Research
U.S. Corporate Debt Outstanding by S&P Ratings Should investors be worried? The proportion of BBB-rated bonds has increased significantly over time. Image: Deutsche Bank Global Research
Equity Performance by Credit Rating This chart shows the impact of credit ratings on stock returns since the beginning of the year. Image: Ken Fisher, Fisher Investments
S&P Credit Ratings Downgrades The coronavirus crisis sparks record company downgrades. Image: Oxford Economics
U.S. President’s Approval Rating vs. U.S. Unemployment Rate at End of First Term President Trump’s approval rating is historically low compared to the unemployment rate. Image: J.P. Morgan