New Delhi, Nov. 17 -- Global equities are set to generate "solid long-term returns despite elevated valuations," Goldman Sachs has said in its latest Global Strategy Paper, forecasting a 10-year annualised return of 7.7 per cent in USD terms for global stock markets.

In the report titled Building Long-Term Returns: Our 10-Year Forecasts, the investment bank said its return estimate "sits close to the historical median," supported by structural factors including nominal growth, profitability and shareholder payouts.

The firm noted, "We expect global equities to deliver a 10-year total return of 7.7 per cent in USD," even as starting valuations remain high.

Goldman Sachs uses a building-block model in which long-term equity returns are d...