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

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
Larger Image

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?

 

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