GMO have released their monthly forecast of what they believe the probable asset class returns will be over the next 7-years.



  • Asset class / index views are a broad generalisation and should not be interpreted as meaning that all/every component is the same. Within each of these asset classes one will find assets which are undervalued and overvalued.
  • Generalisations are there to generate ideas and to show investors some areas in which to look for opportunities and some areas to tread with caution.
  • The long-term real return (above inflation) of US equities is around 6.5%
  • The long-term mean US inflation sits around 2.2%.
  • To global investors, Emerging Markets are looking relatively attractive

South African managers who invest globally are seeing a similar picture. See here for example.

Disclaimer: The information provided is not intended to address the circumstances of any particular individual or entity and should not be considered to be advice in any way. No person should act upon this information without first obtaining professional advice.

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