Click to enlarge
Source: GMO
We have shown this chart previously, but today is an excellent day to bring it up again: Jeremy Grantham’s 7 year expected returns for various asset classes relative to their valuations.
US large and small cap are pricey, Europe and other (non US) mature market are reasonable, and emerging markets are outright cheap. Our managed asset portfolios reflect that, as we are underweight bonds, overweight Europe and EM, and equal weight US.
Source:
GMO 7-Year Asset Class Forecasts (July 2013)
GMO Asset Allocation Team – Published 8/13/2013
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