Global Market Index Forecasts 7% Return, but Faces Headwinds
Despite ongoing market uncertainty, the Global Market Index (GMI) is projected to deliver a 7.1% annualized total return, according to data through September. The estimate is unchanged from previous forecasts.
The GMI is a market-value weighted mix of major asset classes – excluding cash – represented through Exchange Traded Funds (ETFs). The return forecast is an average of three models.
Did you know?-Most GMI components are expected to outperform their 10-year results, but US equities, developed foreign stocks, commodities, and US high-yield bonds are expected to lag.
Pro tip:-the GMI is a theoretical benchmark for long-term investors and a foundation for customizing asset allocation strategies.
Reader question:-The GMI’s forecast uses three models: building Block, Equilibrium, and Adjusted, each offering a unique perspective on market performance.
The GMI’s current 10-year annualized return is 9.5%, exceeding previous peaks. Investors should customize portfolios based on individual circumstances.
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