“Steep declines across most asset classes in the second half of 2018 resulted in significant increases in forward-looking returns,” said Catherine LeGraw from GMO’s Asset Allocation team.
“Emerging market value stocks are cheap in absolute terms, and forecast to deliver over 8% annualized real returns. Emerging country sovereign debt, and developed market stocks outside the U.S., particularly value stocks, likewise offer decent returns relative to the U.S., where stocks are forecast to decline 2.5% annually.”
See the original here (free registration required).
