Focus then moves to prospective returns, showing how returns vary with real interest rates, looking at how expected returns vary over time and across markets, reflecting interest and inflation rates. In a discussion of factor investing, there is an overview of the historical rewards from size, value, income, momentum, volatility and other factors.
An interesting view is that the investment instruments: equities, bonds and a 70:30 blend which rewarded the baby boom generation, do not provide a comparable return projection for their millennial grand-children.
|Past annual real returns in developed markets and prospective returns|
Chapter 8 of the printed Yearbook examines emerging markets in detail and this chapter is reproduced in this Summary Edition. Topics include the nature, importance, evolution and profitability of emerging market investing, and studies of factor investing and rotation strategies within the developing world.
Press release at Crédit-Suisse with link to PDF and details to order a printed copy.