Meketa Investment Group outlines forward-looking capital market expectations across asset classes, focusing on return assumptions, valuation starting points, and the implications for long-term portfolio construction. The paper leans against recent return optimism, suggesting lower forward returns driven by elevated valuations and subdued growth expectations.

It highlights that traditional 60/40 portfolios may struggle to meet historical return targets, with equities facing compression and bonds offering limited income. The more provocative angle is that diversification alone may not be enough in a low-return world.