The BlackRock Investment Institute expects U.S. equity market 10-year returns to fall below developed and emerging markets, according to its recently released capital market assumptions.
BlackRock has 4.8% and 4.6% return assumptions for U.S. large caps and U.S. small caps, respectively. It expects developed markets excluding the U.S. and emerging markets to return 8.6% and 8.4%, respectively.
That's a reversal from the previous 10 years ended Dec. 31 when U.S. large caps generated an 11.4% return and small cap stocks returned 8.3%, both on an annualized basis.
