In this 2022 update, the UK-based Multi Asset Team sets out their expected longer-term returns for 20 major asset classes across equity, fixed income, currencies and commodities, discussing the implication of their forecasts for each asset class.
The strong price performance of equities in 2021 has led to a reduction in expected returns for world markets. Despite this, equity valuations do not look excessive relative to other asset classes
Low starting yields for government bonds provide limited room for capital growth, but we still expect a small premium over cash from the additional income
To achieve similar returns to history, portfolios may need to look different to prior years, as valuations in core asset classes compel investors to look more widely for returns and diversification
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.