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.