GMO Shows Why BTFD In Small Caps Is Dead (In 1 Simple Chart)

Tyler Durden's picture

The future for US Small Caps is not a bright one, according to GMO. While High Quality US equities are expected to return a meager 2.1% annually over the next 7 years, Small Caps have become so egregiously over-valued that GMO's forward-looking estimate of Small Cap performance is a dismal 5.0% annual loss over the next 7 years (compared with a 6.5% annual return average for broad US equities). It seems the BTFD easy money has been made in this bubble...

 

 

Source: GMO