10-Year Capital Market Forecasts (2021-2030)

By Crescent Team

Asset Class Returns, Standard Deviations, Correlations & Tail Assumptions

This paper details our input assumptions for the investment period from January 2021 to December 2030. It includes 10-year estimates for asset class returns, standard deviations, skewness, kurtosis and correlations.

Investment Themes for 2021-2030

• Cash remains an expensive opportunity cost for investors.

• Given the reduction in forward-looking returns for bonds across the globe, generating positive real returns will be challenging moving forward.

• Global stock market valuations rose in 2020 with prices expanding faster than earnings capacity.

• Real Assets remain an important diversifier as the events of 2020 have likely planted some seeds for rising future inflation.

• Midstream return assumptions are down materially as the asset class has appreciated dramatically off the COVID-induced (March) lows. We expect the asset class to remain volatile in 2021.

Download our 10-Year Capital Market Forecasts (2021-2030).

Note: This report is intended for the exclusive use of clients or prospective clients of Crescent Wealth Advisory. Content is privileged and confidential. Any dissemination or distribution is strictly prohibited. Information has been obtained from a variety of sources believed to be reliable though not independently verified. Any forecast represent future expectations and actual returns, volatilities and correlations will differ from forecasts. Past performance does not indicate future performance. The information presented does not represent a specific investment recommendation. Please consult with your advisor, attorney and accountant, as appropriate, regarding specific advice.