Goldman forecasts slowing market returns tied to concentration

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Goldman Sachs أخبار

S&P 500,Josh Schafer,Equity Returns

Goldman Sachs forecasted declining equity returns from the S&P 500 (^GSPC) over the next decade, slowing to 3% compared to the 13% returns seen over this...

explains Goldman Sachs' latest note, noting equity strategist Ben Snider's assurances that this isn't as bearish a call as it looks.

And he said, when you zoom out over a 10 year period, it's hard to have a look into what that shock could be.That's why we feel good about stocks over the next 12 months. And we did 13% for 10 years on average and then you do 3% for 10 years on average, you come out to something closer in the 8% range over a 20 year period, which again, if we study the S and P 500 over a 20 year period, that's not that far off from average.And I think what Ben told me is, that's kind of been the takeaway is he's talked to investors talking about this note saying 3% over the next decade.

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NEW YORK — U.S. stocks drifted to a mixed close after erasing most of their losses from earlier in the day. The S&P 500 slipped a bit less than 0.1% Tuesday, marking its first back-to-back loss in a month and a half. The Dow Jones Industrial Average ended essentially flat. Like the S&P 500, it’s been on a long, record-breaking rally and set its latest all-time high on Friday. The Nasdaq composite rose 0.2%, lifted by gains in several Big Tech stocks including Microsoft.

 

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