J.P. Morgan Sees 60/40 Stock-Bond Portfolio Returning 7% Annually Over Next 10 to 15 Years
Summary
- J.P. Morgan Asset Management said a 60% stock, 40% bond portfolio is expected to generate an average annual return of 7% over the next 10 to 15 years.
- It projected average annual returns of 7.5% for U.S. stocks, 5.3% for global bonds, 9.8% for private equity and 5.5% for gold.
- It said adding alternative assets to a traditional stock-and-bond portfolio could lift the average annual expected return to 7.5%.
Forecast Trend Report by Period
J.P. Morgan Asset Management projects that a traditional investment portfolio made up of 60% stocks and 40% bonds will deliver an average annual return of 7% over the next 10 to 15 years.
Walter Bloomberg reported on Oct. 19 that J.P. Morgan Asset Management, in its long-term capital market assumptions, put the expected average annual return for a 60/40 stock-and-bond portfolio at 7.0%.
The firm forecast average annual returns of 7.5% for U.S. stocks, 5.3% for global bonds, 9.8% for private equity and 5.5% for gold.
J.P. Morgan Asset Management said adding a range of alternative assets to a traditional stock-and-bond portfolio could raise the expected average annual return to as much as 7.5%.
The outlook covers long-term return estimates for the next 10 to 15 years, and actual investment performance may differ.
JH Kim
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