Vanguard 2023 Outlook

The Vanguard economic and market outlook for 2023: Beating back inflation report is published. A very interesting read. However, if you are not interested in detail and only want to know how to best invest long-term please skip to the last page. You will find the recommended asset allocation using their 10-year look-ahead which is predicted to obtain an annualized total return of 6.4%.

Recommended asset allocation:

  • 50% equities
    • 30 % US
    • 10% Europe
    • 10% Emerging Markets
  • 50% fixed income
    • 22% International bonds
    • 22% US bonds
    • 6% Treasury
My key takeaways from the 10-year look-ahead:

  • Inflation will be under control
  • Europe and Pacific Emerging Markets will outperform the US
  • Bonds will achieve better returns than recently
I rebalanced accordingly.

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