Listen: United States, Lucia, Marcus discussed on The Ray Lucia Show
"Folks Lucia show, helping you make better money. Oh. Talking about the GMO seven-year asset class real return forecasts, and it doesn't look pretty at all. Real. Meaning after inflation. US large-cap stocks expected to earn a minus five point two percent after you account for inflation. Which means they're gonna lose three percent. Per year for the next seven years. Nominally? Crazy stuff man who wants to lose money in the market. International stocks pretty close to break even down a little bit. After inflation. But emerging markets are the only ones. That actually are above water three point two percent. And on the bond side. It looks equally as dismal. International bonds down minus one point eight percent. Emerging market debt up two point two percent. So it's just not looking all that hot. I'm gonna talk about some alternatives here in just a moment. But I thought that I would refresh everyone's memory on where we are year to date. In terms of the market performance. And this could change. Any moment. Because Marcus have been pretty volatile lately, haven't they? The Dow's up three point seven two percent. The NASDAQ is up seven point seven four percent. The Russell small cap index is flat. Point three eight percent. And the standard and Poor's five hundred is up four point zero nine percent. Now, if you've got an adviser, and they're charging fees. You're going to have to subtract that that's just from the index itself. Now bonds have been in the tank this year. And I wanna talk about this a little bit later, hopefully an opportunity to do that. But core US bonds are down minus two point four one percent. Long core bonds minus six point four four percent year to date. People buy bonds because they're supposed to be safe. But in a rising interest rate environment and can be nasty corporate bonds. Minus three point three two percent long corporate bonds. Minus six point five five percent. Government bonds, the safest of all. Minus two point two one percent. Intermediate minus one point five eight percent. Long minus six point three five percent. Make alone that the government this year. A long term loan twenty thirty years. You lost six percent mortgage. Bonds minus one point seven seven tips treasury inflation protected securities, minus two point six percent. The only thing that really looks. Okay. And the bond world high yields are up one point six percent. And T-Bills cash basically one point four one percent. So where do you go to build wealth in a market like this? Well, number one is you do not. Bail on your stock market portfolio. But as I have mentioned for years and years and years looking at alternatives to the stock market can make some sense. And alternatives to the bond market as well. Alternatives to the bond market. Could be other forms of debt private debt and so forth. And you gotta look hard for this stuff. You need a very very good financial adviser. You don't have to look quite as."