FX168 Financial News (North America) News Goldman Sachs Group (GS) strategists said that as investors turn to other assets such as bonds to obtain better returns, the US stock market is unlikely to maintain the extraordinary performance of the past ten years.

According to analysis by strategists including David Kostin (David Kostin), the S&P 500 Index (^GSPC) is expected to have an annualized total nominal return of only 3% over the next 10 years. In contrast, the yield over the past decade was 13%, and the long-term average yield was 11%.

They also believe that the benchmark index is about 72% likely to lag behind treasury bonds, and 33% likely to lag behind inflation by 2034.

“Investors should prepare for stock returns over the next decade, which will approach the low end of their typical performance distribution,” the team wrote in an Oct. 18 report.

After the global financial crisis broke out, the US stock market rebounded, first driven by interest rates close to zero, and then by bets on economic recovery. According to data compiled by Bloomberg, the S&P 500 has outperformed the rest of the world in 8 of the past 10 years.

(Photo credit: Bloomberg)

However, this year's 23% rebound was mainly focused on a few of the biggest tech stocks. Goldman Sachs strategists said they expect returns to expand, and the performance of the weighted S&P 500 index will outperform the market capitalization-weighted benchmark index over the next ten years.

They said that even if the rebound continues to be concentrated, the S&P 500 return will be below average, around 7%.