Goldman Sachs (NYSE:GS) forecasts that over the next decade the S&P 500 will yield an annualized return of 3%, significantly lower than 13% yearly return over the past ten years. David Kostin, Goldman's Chief U.S. Equity Strategist, offered this view in a note on Thursday, which is noticeably below the general market consensus of 6%.

Indicating a marked slowdown in growth, the 3% return forecast places future returns in the 7th percentile for 10-year returns since 1930. Emphasizing the unpredictability in future market performance, Kostin's team pointed out that the forecast range includes a probable 7% gain at the high end and a 1% fall at the low end. This estimate further emphasizes the difference from the 11% long-term average return of the stock market.

• Warning! GuruFocus has detected 6 Warning Signs with GS.

Maintaining a 95% confidence band around the projection, the strategists explained their conservative approach as the result of certain market conditions. They also underlined the importance of the robust 13% annualized return of the stock market during the past ten years, which surpassed preceding norms. Goldman's forecast points possible difficulties for anyone seeking large returns in the upcoming years.

This article first appeared on GuruFocus.