Grantham Forecasts Rough Seven Years for Equities, Bonds
- GMO expects negative real returns for both over that period
- Look beyond U.S. for returns, especially to emerging markets
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Jeremy Grantham isn’t shaking his reputation as a perma-Bear.
His firm, Boston-based GMO, is out with its latest seven-year outlook and it doesn’t make for happy reading. GMO expects the annualized, inflation-adjusted return for U.S. stocks to be negative 4.2 percent over the period. U.S. bonds are forecast to lose 0.5 percent a year while emerging-market stocks, long a GMO favorite, are expected to climb 1.9 percent annually.