Goldman Sachs just released a report projecting just 3%/year return for S&P 500 over the next 10 years… They also project bonds to outperform stocks over the next decade- with 72% probability. AND YES, bonds historically carry a fraction of the risk of stocks (using the widely accepted risk metric, standard deviation). 2 stated headwinds against stocks returns moving forward: Valuations- their favorite valuation metric is the CAPE ratio- which has only been more expensive 3% of the time throughout history. Concentration Risk- they believe the stocks that have dominated recently (ahem, MAG 7), cannot continue to have the sales growth and unbelievable margins they’ve experienced. AKA- they think competition is coming. Goldman doesn’t have a crystal ball, but they’re also not stupid, and they have no vested interest in poo-poo-ing stocks… TAKEAWAY: if you’re not owning BONDS, PLEASE MAKE SURE THERE’S A GOOD REASON- because they’re projecting a 72% likelihood they outperform S&P 500, AND they historically have a fraction of the risk. Disclosure: past performance is no guarantee of future returns. And, there’s nothing to say that Goldman Sachs’ outlook comes to fruition. #goldman #goldmansachs #fisherinvestments #finance #personalfinance #investing #investor #sp500 #stocks #stockmarket #bonds #cfp #cima #lifegoalnation #lifegoalinvestments