U.S. High Yield Spreads vs. IG Spreads and Large Cap Growth Relative to Small Cap Value This chart suggests that new highs in stocks need high yield outperformance and sustained rotation from large cap growth to small cap value. Image: BofA Global Investment Strategy
S&P 500 vs. U.S. High Yield/High Grade and Large Cap Growth to Small Cap Value Charts suggesting that new highs in stocks need high yield outperformance and sustained rotation from large cap growth to small cap value. Image: BofA Global Investment Strategy
U.S. Equities and Global Equities ex-U.S. This chart suggests that higher yields could cause great rotation from bonds to stocks, US equities to non-US equities, growth to value, large caps to small caps, tech stocks to bank stocks, credit to commodities,… Image: BofA Global Investment Strategy
Average Monthly Return During Global Manufacturing PMI Expansion Phases Since August 15 2019, the rotation performance has been higher than average during global manufacturing PMI expansion phases. Image: Goldman Sachs Global Investment Research
U.S. Cyclicals vs. Defensives It’s all about sector rotation: the cyclicals vs. defensives trade is now pricing a growth acceleration. Image: Goldman Sachs Global Investment Research
U.S. Equity Fund Flows vs. Bonds and Cash This chart puts into perspective the rotation from equities to bonds and cash, as investors become cautious about further growth. Image: Goldman Sachs Global Investment Research
Fund Flows into Emerging Markets Stocks and Bonds The rotation into bonds and out of equities continues. Image: HSBC
Fed’s Broad USD and Cyclicals vs. Defensives This chart suggests that current equity market rotation weakends the U.S. dollar. Image: Morgan Stanley Research
Europe’s Stocks Are Really Unloved Europe’s benchmark has lagged other major ones in recent years. But on the positive side: the valuation is low, Europe will not disintegrate, the rotation from bonds to equities has not yet begun, and there is a fairly good growth in 2019. Image: Bloomberg