Vanguard Turns Bearish on S&P 500 While Wall Street Diverges
Vanguard's latest forecast paints a subdued picture for U.S. equities, projecting annual returns of just 3.5% to 5.5% over the next decade—a stark contrast to the S&P 500's historical 10% average. The firm singles out growth stocks, expecting mere 2.3%-4.3% gains despite their recent dominance. "Long-term prospects are subdued," the note declares, even as it acknowledges stretched valuations could fuel near-term momentum.
Meanwhile, JPMorgan strikes a defiantly bullish tone, targeting 7,500 for the S&P 500 by 2026. This clash of titans underscores the market's existential debate: Is this a pause before AI-driven acceleration or the calm before a valuation reckoning? The divergence echoes crypto's own ideological splits, where Bitcoin maximalists and altcoin innovators similarly wrestle over growth trajectories.
