1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

GMO 7-Year Return Forecast: US High Quality is the Place to Be

February 20, 2012 | About:

GMO publishes a monthly forecasts of 7-year asset class return. As of Jan 31, 2012, US market is expected to return 0.8% a year. US small cap is positioned for -1.5%. US high quality is expected to gain 5% a year. Emerging market is expected to gain 5.6%. Almost all bonds will return negative.

All the numbers are net returns after a 2.5% of long term inflation rate.

The results for US market is very close to what GuruFocus gets from the ratio of total market cap over GDP, or Shiller P/E ratio.

The prediction for emerging market is lower that what GuruFocus expected from the Global Market Valuation page. This page also predicts better returns from Singapore and Australia.


About the author:

GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.7/5 (13 votes)


JoeDaWealthManager premium member - 4 years ago
Great to see what smart folks think...only one problem: no way to predict anything with headwinds prevailing in the likes of ECB and PIIGS issue, Iran's Persion empire ambitions, China inflation baked into exports, and US debt crisis coming soon...$15.5 trillion and a bunch of DC spin doctors do-gooders!

Please leave your comment:

GuruFocus Mobile App

User Generated Screeners

DBrizan22Oct2016 quality2
DBrizan22Oct2016 quality
DBrizanquality 22Oct2016
DBrizan"quality 21Oct2016
DBrizanquality 21Oct2016
HrZgScreen 1
gjg3000Real Estate F and EV
Doug TaylorNCAV
deloriesGreat Backtesting Portfolio 1
npapapanosno ROC
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)