Goldman Sachs predicts: The U.S. stock market will underperform emerging markets over the next decade.

Odaily Planet Daily reports that Goldman Sachs strategists expect U.S. stocks to continue lagging behind the global markets over the next decade. Analyst Peter Oppenheimer and his team recommend increasing diversification outside the U.S. due to high stock valuations limiting returns. They project the S&P 500 index will have an annual return of 6.5% over the next 10 years, the weakest among all regions. Emerging markets are expected to perform the strongest, with an annual return of 10.9%. After a decade of outstanding performance driven by a surge in tech stocks and the artificial intelligence boom, the S&P 500 has significantly underperformed its global peers this year. The benchmark index has risen 16%, while MSCI’s global index (excluding the U.S.) has increased by 27%. Strategists anticipate that in the coming years, emerging market returns will be driven by strong profit growth in China and India. Japan’s annual return is expected to reach 8.2%, and Europe is projected to deliver an annual return of 7.1%. (Jin10)