SPC Premium: The Real Takeaway from Goldman’s Gloomy Outlook

And one investment to "counter" the gloom ...

When Chief Stock Picker Bill Patalon runs financial models to craft price outlooks for the SPC Premium Dossiers, he always includes this one crucial caveat: Predicting anything too far into the future is a fool’s errand.

It’s not specificity he’s after.

It’s “magnitude.”

Goldman Sachs Group Inc. GS 0.00%↑echoed this sentiment in a recent outlook, albeit with a more somber tone. The global investment bank noted that the stellar returns of the past decade were fueled by near-zero interest rates and robust economic growth. And it said we’re not likely to taste such a bullish elixir in the decade to come.

The investment bank predicts the S&P 500 — one of the indexes we think of as “The Stock Market” — will generate an average annual return of 3% over the next 10 years, significantly lower than the 13% yearly average of the past 10.

When Bill interviewed Mark Higgins, author of Investing in Financial History, the financial historian shared he also sees a “bumpy road” ahead. He’s concerned that the Federal Reserve cut interest rates too early, which means we could face a repeat of the 1960s and 1970s that featured both stagflation and recessions.

This isn’t being shared to bum you out … or to scare you.

Because the real takeaway from Goldman’s report is that you always want to be prepared and to make sure your portfolio is diversified; there are always corners of the market to make money.

One corner where we see opportunity? Silver.