For you fans of Asset Allocation (and I am one of them) here is GMO’s 7-year asset class forecasts as of December 31, 2009.
Note the dotted red line across the middle — that represents the historical returns of US Equities as a class.
Underperforming in GMO)’s opinion are US equities and bonds; Outperforming are Emerging markets, large cap international stocks, and Timber.
I think that does it for Jeremy Grantham Week!
GMO 7-Year Asset Class Forecasts (4Q 2009)
GMO Asset Allocation Team – Published 1/12/2010