Decade of Big S&P 500 Gains Is Over, Goldman Strategists Say
Published On Oct 21, 2024, 6:41 AM
Goldman Sachs strategists predict that the strong performance of the S&P 500 over the last decade will not continue, forecasting an expected annualized return of just 3% over the next ten years. They believe there's a high probability that stocks will underperform Treasury bonds and could even lag behind inflation. The strategists note that while there has been a concentrated rally among large tech stocks, they anticipate broader returns from a more equal-weighted index moving forward. Despite the forecast of lower returns, investor sentiment remains optimistic about corporate performance influencing stock prices in 2024, more than political outcomes or Federal Reserve policies.
Stock Forecasts
SPY
Negative
With the S&P 500 expected to yield only 3% annually in the coming decade and high chances of underperformance compared to bonds, investors might consider reallocating their portfolios. The significant market movements suggest looking into safe haven assets or bonds.
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