Goldman Sachs predicts that the US stock market will underperform emerging markets over the next decade.

Goldman Sachs strategists predict that U.S. stocks will continue to underperform global markets over the next decade. Analyst Peter Oppenheimer and his team advise investors to diversify beyond the U.S., as overvalued stocks limit returns. They expect the S&P 500 to return 6.5% annually over the next 10 years, the weakest of all regions. Emerging markets are projected to be the strongest performers, with annual returns of up to 10.9%. After a decade of sustained strong performance driven by tech stock rallies and the AI boom, the S&P 500 has significantly lagged behind its global peers this year. The benchmark index has risen 16%, while the MSCI World Index (excluding the U.S.) has risen 27%. Strategists expect emerging market gains to be driven by strong earnings growth in China and India in the coming years. Japan is projected to offer an annual return of 8.2%, and Europe is expected to deliver 7.1% annual returns for investors. (Jinshi)