Expected Long-Term Returns for Traditional Asset Classes


Expected return for various asset classes over the forthcoming 7-year period:  

7-Year Asset Class Real Return Forecast from Grantham, Mayo, Van Otterloo


Expected return for a traditional stock/bond portfolio (60% S&P 500, 30% Treasury Bonds, 10% T-bills) over the forthcoming 12-year period:

After dividends, approximately 0% return.


Chart Source: John Hussman’s weekly market comment entitled Overvaluation, Deteriorating Market Action, and Coordinated Exit