In their latest 7-Year Asset Class Forecast, GMO are predicting that ‘Emerging Value’ will be the standout for the next seven years, with a 9% return. The best returns in the bond market will come from ‘Emerging Debt’, which is forecast to return 3.5%. Here is a detailed analysis:

Stocks

• Emerging Value – 9%
• Emerging – 5.2%
• International Small – 4.5%
• International Large – 2.5%

Bonds

Emerging Debt – 3.5%