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Indexed Return Over the long term, U.S. mid-caps have demonstrated superior performance compared to both large-caps and small-caps, despite recent outperformance by large-caps. Image: Goldman Sachs Global Investment Research

Consensus Estimates EPS Growth Consensus estimates project a 14% growth in S&P 500 earnings per share for 2025, indicating a continued positive trend in corporate profits. Image: Goldman Sachs Global Investment Research

S&P 500 Stocks – Earnings Day Moves Last quarter set a 15-year record for earnings day volatility, with 12% of S&P 500 stocks experiencing price movements greater than 10%. Image: Goldman Sachs Global Investment Research

Average 1-Month S&P 500 Return vs. Change in 10-Year U.S. Treasury Yields The S&P 500 typically struggles when U.S. Treasury yields rise quickly. This is largely due to decreased stock valuation multiples, especially for high-priced mega-cap growth companies that thrive in low-rate environments. Image: Goldman Sachs Global Investment Research

U.S. Stocks – Cyclicals vs. Defensives Investor sentiment is often reflected in the performance of cyclicals versus defensives. Typically, expectations of economic growth lead to a preference for cyclicals, resulting in their outperformance relative to defensives. Image: Goldman Sachs Global Investment Research

S&P 500 Level and EPS Goldman Sachs has raised its 12-month price target for the S&P 500 index to 6,300, driven by robust earnings per share growth. Image: Goldman Sachs Global Investment Research

10-Year Turnover of S&P 500 Constituents Over a typical 10-year period, 36% of S&P 500 constituents experience turnover. This level of turnover is significant, highlighting the challenges of tracking long-term performance for individual firms within the index. Image: Goldman Sachs Global Investment Research

Global Market Implied Equity Risk Premiums The current low equity risk premium in the U.S. suggests a challenging investment landscape, indicating that investors may not receive adequate compensation for the risks inherent in equity investments. Image: Goldman Sachs Global Investment Research

Risk Appetite Indicator Level and Momentum Factors The risk appetite indicator suggests a risk-on environment that favors higher-risk investments, driven by positive economic signals and investor confidence. Image: Goldman Sachs Global Investment Research

10-Year Annualized S&P 500 Returns Goldman Sachs predicts that the S&P 500 will achieve an average annualized return of only 3% in the coming decade, considerably below historical norms, reflecting concerns about high equity valuations. Image: Goldman Sachs Global Investment Research