Key insights
- Major financial institutions like Goldman Sachs, Vanguard, and Schwab project lower annualized returns for the S&P 500 over the next decade, ranging from 3% to 6.5%. This is significantly lower than the returns seen in the previous decade. This suggests a potentially bearish outlook for US equities, driven by factors such as higher valuations and slower economic growth.
So was banking on the 7-10% assumed return standard we've been lucky enough to of had but when doing some research today it looks like projections are not quite that for the next decade.
Have any of y'all seen this? What are your thoughts? Next 10 year projections suggest a much lower annualized return ranging 3% - 7% compared to the 10-15% we saw in the last decade.
Key 10-Year Market Projections
- Moderate Returns: Major financial institutions anticipate a "dismal" or lower-return decade, 3%–6.5% range. * Goldman Sachs & Others: 3% to 6.5% annual return for the S&P 500 * Vanguard Outlook: U.S. equities will likely return 3.9%–5.9% annually over the next decade. * Schwab Forecast: 5.9% nominal return for US large-cap stocks.