When you look across the globe for attractive asset classes to invest in many of us start and stop with the US. The following paragraphs will zero in on the efficiency of stocks and bonds across the US, International Developed and Emerging Markets and how they are reflected in a global asset allocation set.

Here are the latest global mid-term (10 r) broad asset class expectations.

Returns are based on valuation and current yields. Risk is based on historical volatility. Efficiency = return/risk.

On the basis of efficiency, it’s easy to see the most attractive asset classes.

Emerging markets are the most attractive on the basis of total efficiency.

Bonds are more attractive than stocks.

We can see that allocation mixes with a majority bond allocation are more attractive across

an asset allocation model set with a 50% US constraint.

If you are approaching asset allocation on the basis of forwarding looking expectations then you’ll need greater emerging markets allocations to make your strategies more efficient.