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Goldman Sachs Predicts Weak U.S. Stock Market Returns Ahead

11/12/2025

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Summary

Story summary

Goldman Sachs projects the United States stock market will deliver 6.5% annualized returns over the next decade, the lowest globally.
Analysts cite high valuations, with S&P 500 trading near a 21x forward price-to-earnings ratio and weak earnings growth.
They expect profitability to stagnate, with net margins near record highs.
Emerging markets are projected to see stronger earnings growth, prompting diversification toward them amid United States' weakening economy and rising deficits.

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Story summary

Goldman Sachs projects the United States stock market will deliver 6.5% annualized returns over the next decade, the lowest globally.
Analysts cite high valuations, with S&P 500 trading near a 21x forward price-to-earnings ratio and weak earnings growth.
They expect profitability to stagnate, with net margins near record highs.
Emerging markets are projected to see stronger earnings growth, prompting diversification toward them amid United States' weakening economy and rising deficits.