Most people worry about what the market will do this month, or maybe this year. But the real growth usually happens over much longer stretches of time. That’s why Goldman Sachs looked ahead 10 years instead of 10 weeks—and their findings are surprisingly encouraging.
Here’s the big picture, explained in plain language.
- Stocks should keep growing over time
According to Goldman Sachs, global stocks could grow around 7% to 8% a year over the next decade. That’s right in line with what markets have done historically.
It’s not a short-term prediction. It’s simply what long-term trends suggest.
- Most of that growth comes from companies making more money
Stock returns mainly come from three things:
- Companies increasing their profits
- Dividends (the cash companies pay out to investors)
- How expensive stocks are at the time (valuations)
Over the next decade, the biggest force behind returns is expected to be simple:
➡️ Companies steadily growing their earnings
Earnings growth tends to be much more dependable than trying to guess short-term market moves.
- The U.S. won’t be the only star performer
Over the past decade, U.S. stocks—especially big tech—outperformed almost everything. But Goldman Sachs sees a shift coming.
Going forward, they expect:
➡️ Emerging markets and Asia to grow even faster than the U.S.
Why?
- Many of these economies are expanding quickly
- Companies are improving how they operate
- Their stock prices start lower, which gives them more room to rise
This doesn’t mean abandoning U.S. stocks. It just means spreading your investments so you're not relying on a single country.
- Dividends still provide steady income
Even when markets bounce around, dividends tend to stay steady.
➡️ Dividends are expected to contribute 2–3% of returns each year.
That might seem small, but over a decade it can make a meaningful difference.
- A weaker U.S. dollar could help boost global returns
Goldman Sachs expects the U.S. dollar to weaken a bit over time.
➡️ If that happens, international stocks become even more valuable when converted back into U.S. or Canadian dollars.
That means global investing could provide a little extra lift.
- The big idea: long-term investing still works
There’s no shortage of scary headlines these days, and markets will always have choppy moments. But here’s what Goldman Sachs’ research says:
✔️ Companies will likely keep growing
✔️ Dividends keep paying
✔️ There are big opportunities outside the U.S.
✔️ Diversifying globally can help lower risk
✔️ Long-term returns still look attractive
So the real lesson is simple:
➡️ Stay invested, and stay diversified.
- What this means for you
Here’s the clearest takeaway:
⭐ A well-diversified portfolio—across the U.S., Canada, Europe, Asia, and emerging markets—may be better positioned for long-term success.
⭐ Returns might not match the last decade’s performance, but they should still be solid.
⭐ And as always, patience and consistency matter more than short-term ups and downs.
Footnotes:
1 Goldman Sachs Global Investment Research. Building Long-Term Returns: Our 10-Year Forecasts. Global Strategy Paper No. 75, 12 Nov. 2025.
2 Infographic adapted from Goldman Sachs Global Investment Research. Building Long-Term Returns: Our 10-Year Forecasts. Global Strategy Paper No. 75, 12 Nov. 2025.
Copyright © AdvisorAnalyst
