Over the last week, market professionals have been posting and commenting on the most recent market forecast put out by Goldman Sachs. This is par for the course - all the biggest investment banks update their forecasts at least once a quarter, and the more prestige the bank has, the more it will be discussed. What makes this one special is that Goldman’s Global Equity Strategist, David Kostin, had the unmitigated gall to forecast that with current market valuations and conditions, the 10yr compound return for the SPX over the next decade would be about 3%. That is decidedly on the low side of history.
Why So Gloomy Goldman?
Over the last week, market professionals have been posting and commenting on the most recent market forecast put out by Goldman Sachs. This is par for the course - all the biggest investment banks update their forecasts at least once a quarter, and the more prestige the bank has, the more it will be discussed. What makes this one special is that Goldman’s Global Equity Strategist, David Kostin, had the unmitigated gall to forecast that with current market valuations and conditions, the 10yr compound return for the SPX over the next decade would be about 3%. That is decidedly on the low side of history.