Is there a lost decade ahead for stocks?

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Is there a lost decade ahead for stocks?

Investing.com -- The prospect of a “lost decade” for U.S. stock markets, as outlined in recent analyses by both Goldman Sachs and Yardeni Research, suggests that investors may be facing much lower returns over the next ten years than seen in recent history.over the next decade, potentially dipping to as low as -1% in less favorable conditions, and only reaching 7% in more optimistic scenarios.

As a result, for the S&P 500 to achieve only a 3% annualized return, significant downward adjustments in valuations may need to occur. This productivity-driven growth could provide companies with the conditions needed to sustain or even exceed historical growth rates, translating into healthier profit margins and solid returns for shareholders.

However, Yardeni argues that today’s companies are fundamentally more sound, given their substantial contribution to productivity and earnings across the market, contrasting with the speculative valuations that characterized the tech bubble of the early 2000s.

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