Attraction of emerging market stocks over next 7 years is only growing, GMO says
The attraction of emerging market value stocks — and emerging market stocks in general — continues to grow, according to the latest quarterly projection (as of 12/31/22) from Grantham Mayo Van Otterloo & Co.
Emerging market value stocks are likely to return a real 9.8% per annum over the next seven years, GMO said, up from 9.0% in the Boston-based money manager’s last notice.
Emerging market stocks as a whole are forecast to return 5.6% annually, up from 5.2% earlier. International small-cap stocks are now projected to return a real 5.2% (vs 4.5% previously) while international large-cap stocks come in at 3.2% a year instead of 2.4%, after inflation.
U.S. small caps will lag, shrinking 0.4% a year (instead of -1.4% seen last time), and U.S. large caps are now estimated to fall an average 0.7% annually over the next seven…