Goldman Sachs Forecast: Goldman Sachs projects the S&P 500 will return 6.5% annually over the next decade, while Asian and emerging-market stocks are expected to outperform with returns of 10.3% and 10.9%, respectively, in local currencies.
Investment Recommendations: Investors are advised to consider the Vanguard FTSE Pacific ETF and the Vanguard FTSE Emerging Markets ETF for exposure to Asian and emerging markets, despite the S&P 500's historical outperformance over the last decade.
Expense Ratios: Both Vanguard ETFs have a low expense ratio of 0.07%, making them cost-effective options for investors looking to diversify into international equities.
Caution on Predictions: The author expresses skepticism about Goldman Sachs' forecasts, citing past inaccuracies and emphasizing a preference for maintaining a larger portion of investment in U.S. stocks, particularly the S&P 500, due to its consistent long-term performance.
Mitsubishi UFJ Financial Group Inc is a Japan-based company engaged in financial business. It operates through eight business segments. Retail & Digital Business Group provides financial services to individual customers and corporations. Commercial Banking & Wealth Management Business Group provides financial services to corporations and wealth management clients. Japanese Corporate & Investment Banking Business Group provides financial services to large Japanese corporations. Global Commercial Banking Business Group provides financial services to individuals, mid-sized enterprises, and other enterprises. Asset Management & Investor Services Business Group provides asset management, asset administration, and pension services. Global Corporate & Investment Banking Business Group provides financial services to large non-Japanese corporations. Global Markets Business Group provides foreign exchange, funding and other services. It also operates The Other segment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.