Goldman Sachs predicts a slowdown in S&P 500 returns, forecasting 3% annual gains over the next decade as investors shift assets and market concentration raises concerns.
Goldman Sachs predicts a softening in the returns of the S&P 500, as analysts believe investors will be moving assets elsewhere. GS forecasts an average return of 3% over the next decade, compared to the 10% year-over-year returns seen in recent years. U.S. stocks have rallied to all-time highs following the pandemic-induced financial crisis. The Federal Reserve plans to cut rates further, following their rate cut in September, giving investors hope for a larger market rally. Much of the S&P 500's recent gains have come from just a handful of stocks, referred to as “The Magnificent Seven.” This concentration has analysts concerned that any decline in sales growth or profit margins from these companies could lead to a broader market pullback. Investors are eager to see how the markets will react as we approach the election.
