Vanguard research suggests that the office is not going away, it’s evolving. Investing in office space, though more complex, may give active managers with deep fundamental analysis capabilities opportunities for outperformance. The return to work is likely to result in a new office normal that will vary by region, industry sector, and property class.
Our annual forecast explains why we expect the global economy to slow, leaving full-year 2022 growth, in our base case, of 4.8%. It also explains why our 10-year market outlook is guarded, as reflected in the low-single-digit range of expected returns for a globally diversified, 60% stock/40% bond portfolio.