TD Bank has released a detailed outlook for the next year. Their outlook for returns for various asset classes are:
Cash: 2.5-3.25%
Bonds (SCM Bond Index): 2.0-4.5%
TSX: 3-6%
S&P500: 3-6%
EAFE: 4-7%
Given that bonds and REITs have done extremely well over the last 5 years, perhaps it is time for them to underperform equities over the next few years. Since I don’t know for sure which assets will perform well in the future, I am planning to stick to my asset allocation and rebalance every year.

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