Why Goldman has backed away from its forecast for a lost decade in stocks

Goldman Sachs now expects about 7% annualized S&P 500 returns over the next decade, up from a 3% forecast in 2024.
The bank points to persistently high corporate profit margins and still‑low interest rates as reasons valuations could stay elevated and support returns.
Still, many strategists warn of a possible "lost decade" — the S&P 500's CAPE sits near 40, implying weak long‑term returns to some observers.