2021 capital market expectations

February 2021

Meketa updates its capital markets expectations each year in January. Changes are driven by many factors, including interest rates, credit spreads, and equity prices.

The good news is that most investors achieved returns in 2020 that were above their target return. The bad news is the impact this has on our expectations for future returns. In 2020, yields went down, credit spreads tightened, and prices for most risk assets went up. Hence our expected returns have declined for almost every asset class.