No one can consistently predict future market returns. Many try.
The professionals profiled below made accurate market predictions in the past. Their views are worth considering. Just remember, even if their past predictions were accurate, that is no guarantee they will be right going forward.
For additional perspective, read Market Predictions – Who Got It Right?.
1. Jeremy Grantham – Emerging Markets And High Quality U.S. Stocks
Jeremy Grantham has predicted past returns with unprecedented accuracy. His models, published on 1/15/09, forecast asset class returns over the next 7 years, with the highest returns predicted in emerging markets and high quality U.S. stocks.
See Jeremy in a WealthTrack video talking about the markets and his predictions.
I would also recommend checking the GMO Investment Management home page frequently for updates to his market predictions and forecasts.
2. Advisor Intelligence – High Yield Bonds
Advisor Intelligence provides research for financial advisors across the country. You must pay to access their research (you can sign up for a 2 week free trial).
They rank asset classes on a scale of 1 to 5, with 1 being the most undervalued and 5 being the most overvalued. As of 1/6/09 the only asset class scoring a “1” are high yields. They had this to say about high yield bonds:
Both absolute yields and spreads versus Treasuries and investment-grade bonds are far above prior peaks. A near-worst-case scenario is currently priced into the market. Potential average returns over the next five years are likely to be in the mid-teens.
3. Peter Schiff – Gold And Foreign Investments
Peter Schiff, who accurately predicted the current market crisis, now expresses opposition to the bailout strategies being implemented, says the dollar will continue to decline, and is bullish on gold and foreign investments.
See his market predictions at the end of this live Bloomberg Interview on 1/2/2009.
Google Peter Schiff, search for his latest videos on YouTube, or visit EuroPacific Capital’s website for his latest economic commentary.
Keep in mind, Peter's long term track record isn't that great. Read my commentary in Market Predictions – Who Got It Right? and you'll see what I mean.
4. Seeking Alpha – Treasuries In Trouble
In my blog post on 1/8/09 I linked to this article on the bubble in Treasuries.
More articles have appeared on this site, including this one called Treasuries True Risk and the one featured in this headline How The Treasury Bubble Will Burst and Why.
Seeking Alpha is a well organized website, filled with intelligent commentary, and offering a broad selection of articles; probably a site worth visiting once in awhile.
