Goldman Sachs predicts that the US stock market will underperform emerging markets in the next ten years.

Goldman Sachs strategists predict that US stocks will continue to lag behind global markets in the next ten years. Analyst Peter Oppenheimer and his team suggest investors to increase diversification outside the US, as high stock valuations limit returns. They project an annual return rate of 6.5% for the S&P 500 in the next decade, the weakest among all regions. Emerging markets are expected to perform the strongest, with an annual return rate of 10.9%. After a decade of strong performance driven by the surge in tech stocks and the AI boom, the S&P 500 has noticeably lagged behind its global peers this year. The benchmark index has risen by 16%, while the MSCI global index has risen by 27%. Strategists expect that the returns in emerging markets in the coming years will be driven by strong profit growth in China and India. Japan is projected to achieve an annual return rate of 8.2%, while Europe is expected to bring investors a 7.1% annual return rate.