Chart of the week - 18 November 2024
Gary Moglione discusses how starting valuations can significantly impact long-term returns in the S&P 500, emphasizing the importance of patience and disciplined investing in today’s high P/E environment.
This week’s chart shows the returns of the S&P 500, Dow Jones, Nasdaq and an equal-weighted index of the Magnificent 7 since end October 2023. All of these indices have reached all-time highs following the US election, with the S&P 500 climbing 2.5%, the Dow Jones gaining 3.5% and the Nasdaq up 3%.
This chart shows the total assets in US money market funds from 2007 through to October 2024, showing a steep increase towards these cash-like investments.
The chart shows the MOVE Index over the last year. The MOVE index measures the implied volatility in the US Treasury market, capturing market expectations of future price movements in US Treasuries based on the pricing of one-month Treasury options.
This shows how the UK investment trust market (excluding 3i) has moved to varying degrees of discount over the last 20 years.
This chart shows the cumulative performance of defensive equities, here approximated using the MSCI World Minimum Volatility Index, and of the market-cap weighted global equity index, since the end of 2021.
The chart above shows the recent performance of Chinese equities, proxied here by the country’s blue-chip CSI 300 index of Shanghai and Shenzen- listed companies, following the announcement of monetary stimulus from the Chinese authorities.
This chart shows the widening valuation gap between US small cap stocks (Russell 2000) and large cap stocks (S&P 500), based on their price-to-sales ratios (P/S).
This chart shows the cumulative net inflows for global ETFs across all asset classes for the past four calendar years.
