TOOLS / CAPITAL MARKET ASSUMPTIONS

What do the houses expect next?

Published long-term return and risk forecasts from the major research houses, on one page and on the same footing. Where they agree is worth knowing; where they do not is worth knowing more.

FREE · NO SIGNUP · PUBLISHED FORECASTS, LINKED TO SOURCE

Where they disagree most

Private Equity
14.6%vs3.4%
BlackRock against Research Affiliates, 11.2 points apart
Gold
5.5%vs0.2%
J.P. Morgan against Research Affiliates, 5.3 points apart
US Large Cap
7.7%vs3.3%
BlackRock against Research Affiliates, 4.4 points apart

A dash in the table below means that provider does not publish a forecast for that asset class, not that it forecasts zero. Coverage varies a great deal: check the counts underneath before reading anything into a gap.

J.P. Morgan
42/42 assets
2026, 30th edition
BlackRock
20/42 assets
Q1 2026
AQR
17/42 assets
2026
Research Affiliates
40/42 assets
2026
GMO
8/42 assets
Jan 2026
BlackRock Scenario:
Why they disagree: GMO's valuation-driven model sees severe negative real returns from elevated CAPE ratios, while BlackRock's fundamental approach is constructive on AI-driven productivity. Neither is hedging: they are reading the same market and reaching opposite conclusions about what today's prices imply. Read our deep dive →
Asset ClassVolJPMBLKAQRRAGMOSharpe
AC Asia ex-Japan20.8%7.9%6.1%0.23
AC World Equity16.8%7.0%7.8%6.5%4.8%0.23
Bitcoin42.5%15.0%0.28
Cash / Money Market0.7%3.1%3.4%3.7%3.6%3.4%0.00
Chinese Domestic Equity28.7%7.7%6.7%7.3%8.9%0.16
Commodities (Broad)18.3%4.6%6.8%5.4%0.08
Dev ex US Large Growth16.2%6.7%7.0%0.22
Dev ex US Large Value17.2%8.1%8.3%0.29
Dev ex US Small Growth17.5%7.3%7.5%0.24
Dev ex US Small Value17.1%9.6%9.9%0.38
Diversified Hedge Funds5.8%5.3%8.6%7.8%0.38
EAFE Equity17.6%7.5%7.6%6.9%7.7%1.5%0.25
EM Growth20.2%5.2%4.1%0.11
EM Local Currency Debt12.1%6.7%4.8%7.2%0.30
EM Sovereign Debt8.8%6.3%4.4%5.6%5.4%4.1%0.36
EM Value19.9%9.6%8.4%0.32
Emerging Markets Equity20.9%7.8%6.9%7.4%6.6%2.0%0.22
Euro Area Large Cap22.0%7.8%7.9%6.9%7.3%0.21
Global Infrastructure10.3%6.5%6.3%0.33
Gold16.7%5.5%0.2%0.14
Hong Kong Equity21.4%7.4%8.6%0.20
Japanese Equity15.8%8.8%6.7%9.1%0.36
Private Equity19.8%10.2%14.6%6.6%3.4%0.36
TIPS5.9%4.3%4.2%5.5%4.4%0.20
UK Large Cap17.5%6.6%7.1%6.8%0.20
US Aggregate Bonds4.8%4.8%3.9%4.9%5.3%4.2%0.36
US High Yield Bonds8.7%6.1%5.5%5.0%5.3%0.34
US IG Corporate Bonds7.4%5.2%4.0%5.2%5.4%0.28
US Intermediate Treasuries3.5%4.0%3.6%4.8%4.8%0.26
US Large Cap16.5%6.7%7.7%6.3%3.3%-4.0%0.22
US Large Growth17.3%5.2%1.8%0.12
US Large Value15.0%7.3%3.9%0.28
US Long Treasuries13.0%4.9%5.5%0.14
US REITs17.4%8.8%7.0%5.7%0.33
US Small Cap21.1%6.9%6.1%7.4%7.3%-2.4%0.18
US Small Growth22.3%5.3%5.6%0.10
US Small Value19.1%8.3%8.6%0.27
World Govt Bonds7.3%4.3%4.3%6.0%0.17
World Large Growth15.8%5.2%2.9%0.13
World Large Value15.1%7.4%5.2%0.28
World Small Growth17.9%8.8%6.6%0.32
World Small Value16.6%11.1%8.9%0.48

Risk vs Return by Provider

Read the forecasts yourself

Every firm below publishes its own assumptions. These links go to the source, not to us. Editions change; if a link has moved, the firm's own insights section will carry the current one.

Fifteen more houses, one page each

This tool goes deep on asset classes and shallow on firms: every forecaster we carry full detail for, across all our asset classes. These pages do the opposite, one firm at a time across the four headline classes. If you came looking for a particular firm, start there.

How Each Provider Builds Their Forecasts

J.P. Morgan

Building-block equilibrium model. Decomposes returns into revenue growth, buyback yield, dividends, valuation drag, and margin pressure.

Horizon: 10-15 years · Annual snapshot — stable for institutional planning
BlackRock

Three macro scenarios: Starting Point (base), AI Productivity Boom (US tech dominance), and US Risk Premia Reset (US valuations revert). Volatility held constant — only returns vary.

Horizon: 10 years · Quarterly updates — toggle scenarios above
AQR

CAEP + payout model for equities. Rolling yield model for bonds. Averages two independent approaches.

Horizon: 5-10 years · Rigorous academic framework with annual publication
GMO

Valuation-driven. Anchors on current prices relative to fair value. Mean reversion is central to the model.

Horizon: 7 years · Monthly updates — most responsive to market moves
Research Affiliates

CAPE-based mean reversion. Starting valuations are the primary return driver. Expects halfway reversion over 10 years.

Horizon: 10 years · Monthly updates via free interactive tool

Important Notes

All returns shown are nominal geometric (compound) annual returns in USD. GMO publishes real returns — we add 2.5% expected US CPI inflation for comparability.

Volatility column uses J.P. Morgan estimates throughout. Other providers don't publish volatility for all asset classes.

Sharpe ratio is computed from J.P. Morgan data: (expected return − 3.10% risk-free rate) / volatility.

"—" indicates the provider doesn't publish an estimate for that asset class. This doesn't mean they have no view — it may not be in their public dataset.

† GMO is shown for comparison only. They publish 8 of the asset classes here, too few to build a portfolio on, so Portfolio Lab does not offer them as a selectable assumption set and their figures are left out of the spread table and the scatter above.

These are forward-looking estimates, not predictions. All five providers emphasize significant uncertainty around their central estimates.

Different forecast horizons (7-15 years) make direct comparison imperfect. Shorter horizons tend to be more sensitive to starting valuations.

Optimize With Any Provider's Assumptions

Portfolio Lab lets you switch between all five CMA sources and run optimizations, Monte Carlo simulations, and backtests — completely free.

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Questions this page answers

What are capital market assumptions?

Capital market assumptions (CMAs) are forward-looking estimates of expected returns, volatilities, and correlations for major asset classes, published by institutional research teams. Pension funds, endowments, and advisors use them as the inputs for portfolio optimization and retirement planning instead of relying on historical averages.

Which firms publish capital market assumptions?

The most widely used sets come from J.P. Morgan (Long-Term Capital Market Assumptions, published annually for 30 years), BlackRock, Vanguard, Research Affiliates, and AQR. This tool lets you compare five major providers' 10-15 year forecasts side by side for the same asset classes.

Why do capital market assumptions differ between firms?

Each firm uses different building blocks — valuation mean-reversion assumptions, earnings growth models, term premia, and horizon lengths. Value-oriented shops like Research Affiliates typically forecast lower US equity returns than consensus, while index providers sit closer to the middle. Comparing several firms shows you where the genuine disagreements are.

Is this capital market assumptions comparison free?

Yes. The comparison tool is free and runs in your browser with no signup. A free Portfolio Lab account adds the full platform around it, including the 42-asset optimizer that uses J.P. Morgan's assumptions as live inputs.

Keep reading

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