J.P. Morgan Asset Management released its 2027 Long-Term Capital Market Assumptions, projecting 10–15-year returns amid elevated inflation uncertainty and market volatility. The forecast annual return for a USD 60/40 stock-bond portfolio rises to 7.0%, and adding 30% in diversified alternatives lifts it to 7.5% with a 21% higher Sharpe ratio. The report credits AI-driven productivity, higher corporate profits and higher real yields for lifting the global aggregate bond forecast to 5.3%, the highest in two decades. The U.S. large cap equity forecast rises 80bps to 7.5%, and developed markets overtake emerging markets for the first time, while diversified hedge funds are upgraded by 140bps. Bitcoin receives a return range but is not included as an allocation.
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