Investment managers at the 2005 NACUBO Endowment Forum appeared grateful for the strong equity returns in fiscal 2004, but expressed little hope for a continuation of stellar performance going forward. Pundits said that U.S. equities are hindered by the large federal budget deficit, the large foreign trade deficit, and the low savings rate. U.S. fixed-income investments also may come under pressure if the economy transitions into a period of higher inflation. In general, speakers at the forum recommended broad diversification of investments and an overall lowering of risk exposure. Among the asset classes mentioned with above-average prospects: emerging markets and timber.