GMO 7-Year Asset Class Forecasts - July 2012

GMO has released its monthly 7-year Asset Class Forecasts and the expected annualized returns are basically the same as last month for equities:

• US Large caps: 0.2% per year
• US Small caps: -0.4% per year
• US High Quality: 4.5% per year
• International Large caps: 5.0% per year
• International Small caps: 5.2% per year
• Emerging Markets: 6.2% per year

The US market still sucks ( except High quality stocks), and the rest of the world should do OK.

Bonds expected returns are getting worse and worse by the months, as the bond bubble still inflates.

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