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JP Morgan about Global equity and bonds valuations >>> Equity forward P/E multiples have rerated to cycle highs, but continue scoring well relative to bond yields. Equities are trading at 21x 12m Forward P/E, 35% above historical average. However, they still remain attractive versus other assets. Indeed, Bond yields are trading around 350bp below their long-term average. The Yield gap between equities and bonds is much larger than usual.

Apple (AAPL) - whose market cap alone is now 7% of the entire S&P500 - is more than 100% higher from its March 23, lows, adding a third of a trillion dollars in market cap in the past week alone, and now just fractions away from a $2 trillion market cap (source: Bloomberg)

Yesterday advance by the main equity markets sent the MSCI All-Country Index green for the year, as if the biggest economic crash since the Great Depression never happened...(source: Bloomberg)

EPS revisions have stabilized, but 2021 projections are still on par with 2019 record levels. Historically, it took longer for earnings to regain past peaks (source: IBES, The Market Ears).

Apple received a rare analyst downgrade on Wednesday morning from Bank of America, as the market capitalization of the equity approaches an all-time high $2 trillion. BofA analyst Wamsi Mohan downgraded Apple's stock to "neutral" from "buy", citing rapid multiple expansion that has pushed valuations to rich levels. Besides the downgrade, the analyst increased his price target from $420 to $470. Mohan said Apple shares are trading at the highest premium to the S&P500 in a decade, and now represents 6.5% of the market cap of the entire S&P500. He outlined several risks that remain ahead, including a lower impact from share buybacks, higher tax rate if Democrats win the U.S. elections in November, gross margin pressures for 5G iPhones, and tougher comparables in 2021 for high-margin App store growth (source: BofA, www.zerohedge.com)