Lost decade

Goldman Sachs analysts project a 72% likelihood that the S&P 500 will underperform bond markets over the next decade. In their baseline scenario, they anticipate a modest 3% annualized return, barely outpacing inflation. Goldman attributes this drag in returns to the market's current high concentration. At ECP, we remain committed to our strategy of selecting individual stocks in high-quality businesses that trade below our fair value estimates, steering clear of broad index investing in major developed markets. Over the next ten years, stock-picking will be crucial to achieving superior returns.