This Fund Manager Expects Negative Investment Returns For The Next Seven Years

This Fund Manager Expects Negative Investment Returns For The Next Seven Years
Stéphane Renevier, CFA

about 3 years ago1 min

  • While most investors expect low-single-digit returns for most assets, fund manager GMO expects zero or negative returns on almost everything.
  • Notably, GMO thinks US stocks and bonds – both firm investor favorites over the last few years – are too expensive and will therefore deliver negative real (adjusted for inflation) returns over the next seven years.
  • The only bright spot GMO sees is in emerging market value stocks which remain “extremely undervalued”.
  • Why should I care? It’s important to seek wide-ranging and contradictory opinions when making investments and GMO’s take is certainly that. Keep in mind, of course, that it’s just one view…
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