Market Neutral

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Investment ideas for the informed adviser.

Chart of the day: GMO's 7-year asset class return forecasts

A look at the annual real return projections for equities and bonds


Dec 4, 2012 @ 12:01 am (Updated 5:20 pm) EST

In his latest white paper, "The 13th Labour of Hercules: capital Preservation in the Age of Financial Repression," James Montier, a member of GMO's asset allocation team, looks at how monetary policy that creates consistently negative interest rates has impacted investing. Included in this paper is the chart below, which shows GMO's 7-year projections for equities and bonds.

To read Montier's full paper, click here.