Valuation – GS Top-Down vs. Consensus Bottom-Up Estimates of 2020 EPS Growth This chart suggests that equity market valuations are too high, as current stock prices do not reflect the scale of earnings declines in a recession. Image: Goldman Sachs Global Investment Research
S&P 500 Index vs. MSCI EAFE Index Largely due to structural headwinds, international stocks have underperformed U.S. stocks significantly in this bull market, over the last ten years. It could continue next year as well. Image: LPL Research
Share of Total U.S. Equity Trading Are stock pickers an endangered species? Only one-tenth of the US equity market’s trading volumes comes from fundamental equity investors. Image: Financial Times
S&P 500 – Price vs. Dividends What happens to dividends when there’s a market collapse? This interesting chart shows that dividends don’t fall as much as stocks. Image: A Wealth of Common Sense
S&P 500 Payout Ratio Stock buybacks and dividends as a percentage of free cash flow are reaching dangerous levels. Image: MarketWatch