Performance – What Is Likely to Be the Best-Performing Asset Class? Historically, equities have demonstrated significant growth and the potential for attractive returns over the long term. Will equities be the best-performing asset class in 2024? Image: Goldman Sachs Global Investment Research
G3 Real Core Retail Sales Since 2019, real core retail sales in the United States have risen significantly, while Germany has seen stagnant growth and Japan has witnessed a decline, reflecting differing economic conditions and consumer behaviors. Image: BofA Global Research
Range of U.S. GDP YoY Growth Forecasts and Maximum Error over 12-Month Prior While the U.S. economy may avoid a recession in 2024, U.S. GDP forecast dispersion remains at high levels, highlighting the inherent uncertainty and volatility in the current economic landscape. Image: BofA Global Research
Median Policy Rate Projections in the Fed’s Summary of Economic Projections The anticipation of rate cuts in 2024 and beyond is generally viewed as bullish for equity markets, as it signals a potential easing of monetary policy that can support economic growth and stock prices. Image: BofA Global Research
Asset Class Returns Forecasts Bank of America forecasts a soft landing and moderate growth for global equities in 2024. Image: BofA Global Research
Valuation – S&P 500 Price/Earnings Ratio The S&P 500 P/E multiple is expected to remain above the average level observed since 1990, indicating investors’ willingness to pay more for earnings, possibly due to optimism about future growth. Image: Goldman Sachs Global Investment Research
U.S. Federal Debt Held by the Public The projected ballooning of the U.S. federal debt by 2050 could have negative impacts on the U.S. economy, with more interest payments, limited resources, and potential constraints on growth and government responsiveness. Image: BofA Global Investment Strategy
Fed Funds Rate vs. U.S. Job Openings (JOLTS) Declining wage growth and employment would allow the Fed to make substantial cuts in interest rates. Image: BofA Global Investment Strategy
Valuation – Distribution of Sector FY2 P/E Ratios Relative to S&P 500 The energy sector’s discount to the S&P 500 suggests potential investment opportunities for those who believe in the energy sector’s long-term growth prospects. Image: Goldman Sachs Global Investment Research
U.S. Large Company Stock Total Returns A $1 investment in U.S. large company stocks in 1824 would now be worth $16 million, including reinvested dividends. This growth showcases the wealth-building potential of long-term investing in the U.S. stock market. Image: BofA Global Investment Strategy