Goldman Sachs updates its outlook for U.S. stock returns after previously warning of weak performance. According to Business Insider, the firm increases its expected annualized return for the S&P 500 over the next decade to about 7%. This marks a step up from the roughly 3% annualized return Goldman projected in its 2024 forecast.
The update reflects a change in the bank’s expectations for longer-term market performance rather than an immediate shift in short-term conditions. While Goldman’s prior view suggested a “lost decade” scenario for equities, the revised estimate implies stronger, more optimistic returns for investors over a ten-year horizon.
Based on the available excerpts, the main points of agreement across outlets are that Goldman has backed away from the earlier low-return framework and is now forecasting higher S&P 500 returns for the coming decade. The specific reasoning behind the revision is not provided in the supplied text.
