10-Year Forecast for Major Asset Classes
While it is impossible to predict the future, quantitative models can help us get a general idea of how different asset classes might perform in the future.
One example is the Vanguard Capital Markets Model (VCMM), which produced a set of 10-year annualized return projections for both equity and fixed income markets.
Return on capital
The capital projections from this infographic are listed in the following table.
Asset classReturn forecast (lower)Return forecast (upper)Median volatility
US stocks
4.1%
6.1%
17.0%
US Potential Value Stocks
4.4%
6.4%
19.6%
...