The significant increase in long-term bond rates in 1999 will stabilize at around 6.3 per cent in 2000 with the belief that inflation will remain subdued. This stabilization should result in returns of around 6 per cent on fixed-income instruments. The Survey results also suggest that the bull market is not over yet. Canadian equities are expected to continue to provide strong returns in 2000, with a median prediction of 10 per cent for both small cap and large cap stocks. U.S. equities are expected to lag slightly behind with a 7 per cent return, while international equities should outperform all other asset classes with a 12 per cent return over the next 12 months.
All participants expect positive returns on the international markets.