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Capital Market Assumptions

| January 17, 2023

Capital Market Expectations Projected Portfolio Returns

While Credent Wealth Management does not generate capital market expectations of our own, we do find it useful to aggregate data from numerous reputable financial institutions as a starting point for making objective strategic and tactical asset allocation decisions on a forward-looking basis. Theaggregated forward projections, a selection of which are outlined in Table 1 below, reflect passive investment assumptions. From this data, we can conclude that U.S. equity forward-looking estimated capital market return expectations remain lower relative to historical averages and while theopposite is true within international equity markets. U.S. fixed income returns are projected to provide a similar experience as evidenced in the past fifteen years.

Given the outlook for asset categories, we can project forward-looking estimated return expectations for passive portfolios invested according toinvestment objective, as outlined in Table 2. To counteract the lowered forward-looking return expectations for passive investments, we believethat active management may provide for an increasingly robust approach to risk management and enhanced after-tax returns.


Investment advice offered through CX Institutional, a registered investment advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted.

All data is sourced from Bloomberg, through the release of monthly figures from the U.S. Bureau of Labor Statistics or from the Federal Reserve and any of its affiliated regional location.