Goldman Sachs predicts significantly lower stock market returns for the next 10 years, potentially ranging from -1% to 7% annually, with a 72% probability of stocks underperforming bonds, resulting in an estimated 3% annualized return.
"there might be a scenario in which the next 10 years sees significantly lower returns than many of us have become accustomed to how low you might ask well as Goldman Sachs points out over the last few years the vast majority of stock market profits are driven by what's called The Magnificent 7 which consists of Apple Amazon alphabet meta Microsoft Nvidia and Tesla so is this sustainable and according to Goldman Sachs it's not the way they see it valuations are some of the highest they've ever been when you compare that to earnings and as a result historically that tends to mean that the stock market return returns over the following 10 years are suboptimal or I guess as they say their model predicts annual returns ranging from plus 7% to NE 1% with a 72% probability that stocks will underperform bonds over the next decade for Goldman Sachs this translates to just a 3% annualized return over the next 10 years"
