Scribd
Upload
24 views1 page

7-Year Asset Class Real Return Forecasts : As of January 31, 2022

Uploaded by

Sunil Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
24 views1 page

7-Year Asset Class Real Return Forecasts : As of January 31, 2022

Uploaded by

Sunil Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

7-YEAR ASSET CLASS REAL RETURN FORECASTS*

As of January 31, 2022

STOCKS BONDS

10%
6.5% Long-
5.5% term
5% Historical
Annual Real Return Over 7 Years

3.2%
U.S. Equity
Return
0.1%
0%

-1.3% -1.1% -0.8%


-2.9%
-5% -3.8% -4.3%
-5.0%
-6.2%
-10%

-15%
U.S. U.S. Intl Intl Emerging Emerging U.S. Intl Emerging U.S. U.S.
Large Small Large Small Value Bonds Bonds Debt Inflation Cash
Hedged Linked
Bonds

Source: GMO
*The chart represents local, real return forecasts for several asset classes and not for any GMO fund or strategy. These forecasts are forward-looking statements based upon the reasonable beliefs of
GMO and are not a guarantee of future performance. Forward-looking statements speak only as of the date they are made, and GMO assumes no duty to and does not undertake to update forward-looking
statements. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Actual results may differ materially from those anticipated in forward-
looking statements. U.S. inflation is assumed to mean revert to long-term inflation of 2.2% over 15 years.

Proprietary information—not for distribution. For Institutional Use Only. Copyright © 2022 by GMO LLC. All rights reserved.

You might also like