GMO 7-Year Asset Class Forecasts - April 2012

GMO has just released its monthly 7-year Asset Class Forecasts and the expected annualized returns  have not changed much since last month:

• US Large caps: -0.2% per year
• US Small caps: -1.7% per year
• US High Quality: 3.9% per year
• International Large caps: 4.6% per year
• International Small caps: 3.4% per year
• Emerging Markets: 5.2% per year

US stocks should still be avoided as investments, and bonds anywhere in the world will be a disaster. If the stock markets continue their slump this month, the expected 7-year return should go up in GMO May forecast.

The ways to invested based on these expected returns with ETF are the same as last month.

You can receive GMO's monthly forecasts and the quarterly newsletter by registering at http://www.gmo.com (that's free).