Thread by @BeatTheStreet10

10-Year Forecasts for Major Asset Classes

Let's explore 10-year annualized forecasts for major asset classes using Vanguard's Capital Markets Model (VCMM).

A thread 🧵
#investing #stockmarket

While there’s no way of predicting the future, quantitative models can help us come up with a general idea of how different asset classes may perform in the future.

One example is Vanguard’s Capital Markets Model (VCMM

2/ Equity Returns: Vanguard predicts international equities to outperform U.S. equities in the next decade. Valuation-based expansion in U.S. equities may lead to lower returns, while international equities offer favorable valuations and higher dividend payouts.

3/ Fixed Income: Despite bond market declines in 2022, Vanguard believes investors with a longer horizon may benefit. Cash flows can be reinvested at higher rates, offsetting declines in bond portfolios over time.

4/ U.S. Inflation Outlook: Vanguard expects inflation to remain contained over the next decade. Central banks' efforts aim to keep inflation near target rates, providing confidence for fixed income investments.

5/ Remember, these forecasts offer insights but aren't guarantees. Consult with a financial professional and consider multiple factors before making investment decisions. Stay informed, diversify, and pursue a balanced approach for a secure financial future. 💼🌱

10-Year Forecasts for Major Asset Classes visualcapitalist.com/10-year-annual… via @VisualCap