The S & P 500 returned 13% annually the last 10 years, above the long-term average of 11%, according to Goldman.
Goldman's bearish long-term forecast comes just as the S & P 500 has entered the third year of a bull market, garnering a 27% annual total return the last two years.
"The current high level of equity valuations is a key reason our 10-year forward return forecast sits at the lower end of the historical distribution," stated the note.
The firm said the equal-weight S & P 500 would produce higher returns than the regular benchmark because of the concentration risk.
The Invesco S & P 500 Equal Weight ETF (RSP)F tracks an equally distributed version of the index.
Persons:
Goldman Sachs, David Kostin, Goldman, Goldman's
Organizations:
Nvidia