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The World's Largest Asset Manager Predicts Five Years Of Dismal Returns


BlackRock’s forecasting dismal single-digit returns for the next five years, as low (and negative) interest rates here and abroad weigh heavy on Treasury bonds and Eurozone debt.

“We see a global portfolio made up of 60% equities and 40% fixed income producing annual returns of just 3.3% in US dollars, before inflation, over the next five years,” says Richard Turnill, BlackRock's chief global investment strategist.

For investors sticking to US assets, the outlook is even worse—Turnill predicts less than 3% yield, or about 1% a year after inflation Investment News reports.

The world’s largest asset manager saw tough times in the start of the year, but recovered over $9B in market cap since January. Despite the low projected returns, the board must have some confidence in CEO Larry Fink, who just got an 8% raise to $26M in salary. [IN]