Going forward, when traders yell "Timberrrrrr!" it just may mean the diametrical opposite of what said announcement has traditionally implied. At least according to the latest just released 7 year forecast of various asset class returns as per Jeremy Grantham's GMO. In it, the $100 billion asset manager sees Timber returning an annualized 6.5% over the next 7 years (as of September 2012), outperforming virtually every other asset class tracked by GMO, with Emerging Market stocks (supposedly Africa is envisioned here, as China's debt encumbrance is almost maxed out) second at 6.1%, and International Large stocks in third place. Those who hope to retire with their holdings of US Large Cap firms may want to reconsider, following a 0.0% return in 7 years, underperforming such simple things as cash which GMO sees as returning 0.1% (arguably this implies modest to quite modest deflation in the future). The worst of the worst? US and International bonds, with Inflation Linked bonds underperforming virtually everything with a -2.7% return.