Bill Gross Writes ….Equity markets are priced for too much hope, high yield bond markets for too much growth, and all asset prices elevated to artificial levels that only a model driven, historically biased investor would believe could lead to returns resembling the past six years, or the decades predating Lehman. High rates of growth, and the productivity that drives it, are likely distant memories from a bygone era.
This one is by Jeremy Grantham of GMO who has been bleeding assets for not changing their tune with rising markets(i.e., clients are defecting) as they did in the late ‘90s and also in 2007. Putting out a chart of projected future returns, such as the one below GMO recently published, isn’t great for either business development or client retention—certainly not in a relentless bull market, at any rate.Look at the following chart closely
A recent analysis by the highly respected Mark Yusko found that there has been a 97% correlation between what GMO has projected and how things like US stocks, emerging market debt, et al, have actually performed in the fullness of time. Ergo, investors should definitely pay heed to what GMO is saying presently, despite their recent “out-of-syncness”.Although there are no specific targets for India but GMO expects Emerging markets equity to return approx 4% over next 7 years.
https://www.janus.com/insights/bill-gross-investment-outlook/
