GMO 7-Year Real Return Forecast: US Equities Negative For 7 Years

By: Mike Shedlock | Mon, Apr 14, 2014
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Here is a chart from GMO Asset Forecasts that expresses how I feel as well.

7-Year Global Real Return Equity Forecasts

7-Year Global Real Return Equity Forecasts
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Value and growth within large and small stocks, and REITs, as of March 31, 2014

Estimated returns are negative for US large caps, US small caps, and REITs for every period shorter than seven years.

If accurate (and I believe it is), what will that do to pension plans? For further discussion, please see LA Commission Studies Pension Crisis, Recommends New Commission; Bankruptcy Inevitable.

For a followup, also see Reader Question on the Inevitable Los Angeles Bankruptcy; What About Chicago?



Mike Shedlock

Author: Mike Shedlock

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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit to learn more about wealth management for investors seeking strong performance with low volatility.

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