Key Takeaways Analysts at Goldman Sachs on Monday forecast the S&P 500's average annual return over the last decade of 13% will shrink to just 3% in the next 10 years.The index's extreme concentration,

US stocks are unlikely to maintain their above-average performance over the next decade as investors plow into other assets, signaling an end to the S&P 500’s king-sized returns, Goldman Sachs Group strategists said Monday.

The era of double-digit growth in the stock market may be coming to an end. Goldman Sachs (GS) strategists led by David Kostin estimate that the S&P 500 index will deliver an annualized return of 3% over the next decade — well below the 13% returns in the last 10 years and the long-term average of 11%.

The S&P 500 will see a 3% annualized return during the next decade while posing a 1% advance on a real basis, according to Goldman Sachs.  The index posted an annualized total return of 13% over the past 10 years,