Debt Securities Issued by S&P 500 Companies Should investors be concerned about the corporate debt maturity wall? This chart shows the long term S&P 500 debt maturity schedule. Image: J.P. Morgan US Equity Strategy & Global Quantitative Research
Cumulative Market Cap Growth vs. Cumulative Executed U.S. Buybacks Through the current cycle, U.S. buybacks have returned about $5.5 trillion to shareholders. Image: J.P. Morgan US Equity Strategy & Global Quantitative Research
Distribution of Subsequent S&P 500 Returns From Different Levels of 12M Forward P/E Chart suggesting that equity returns can be strong, even though U.S. equities are currently expensive. Image: Goldman Sachs Global Investment Research
Strong vs. Weak Balance Sheet Stocks Forward P/E Ratio and CCC/BB OAS Ratio Quality in U.S. credit and equity markets is very expensive. Image: Goldman Sachs Global Investment Research
60/40 Portfolio – Bull and Bear Markets This is the longest bull market for balanced equity/bond portfolios in over a century, without a 10% total return drawdown. Image: Goldman Sachs Global Investment
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
Returns Driven by Central Banks? This chart suggests that equity and credit markets are no longer driven by fundamentals, at the moment. Image: Deutsche Bank Global Research
Risk Parity Funds Currently, risk parity equity allocations are near the top of the historical range. Image: Deutsche Bank Global Research
Probability of US Recession is Rising Mike Wilson, chief U.S. equity strategist for Morgan Stanley, said that “Fed could cut as soon as July but it may not halt slowdown/recession.” Image: U.S. Global Investors
Why Are U.S. Banks Healthier Than Ever? U.S. banks are much stronger than ever. They have more capital and should withstand the next recession. See Fed’s annual stress test (Dodd-Frank Act Stress Tests): “The capital levels of the firms after the hypothetical severe global recession are higher than the actual capital levels of large banks…