Chart Talk {01.17.17-Ten Year Expected Returns.

Here's a chart of ten year expected returns for equities as compiled by Research Affiliates.  You can make this bigger by double-clicking on it.  For those of you new to this sort of things the real expected return for each market or asset class is referenced to the left {Y Axis} and annual volatility is the horizontal reference {X Axis}.    Notice foreign markets show expected annual returns substantially better than what the US is expected to post during this time period, albeit with more volatility.  

This is one of the reasons that I think portfolios should have some exposure to foreign markets and why many of our client portfolios have some exposure to these markets in the form of ETFs.  I say this even though overseas markets have mostly disappointed over the last several years.  At some point their turn will come.

*Long various overseas markets via ETFs in both client and personal accounts although positions can change at any time without notice or dissemination on any other form of electronic media.