Goldman expects the boom in stocks to slow dramatically in next 10 years

The bonanza in the U.S. stock market in the past 10 years won't be repeated in the coming decade, according to Goldman Sachs. Strategist Peter Oppenheimer expects the S & P 500 to return just 6.5% on an annualized basis to investors in the next 10 years, including dividends. That's a far cry from the nearly 15% total return the benchmark has delivered in the past 10 years. Oppenheimer pointed to lackluster valuations and relatively weak dividend yields going forward. "The building blocks of our base case 6.5% return forecast consist of 6% annualized earnings per share growth, a 1% annualized decline in valuations and a 1.4% average dividend yield," he wrote. "While valuations are very high today relative to history, multiples have generally trended higher during the last several decades,"