(Reuters:) Goldman Sachs expects the price to increase by a modest 9% in the final year. The record-breaking rally will likely cool off due to worries about slowing economic growth, and possible higher interest rates.

U.S. Equities have been flying this year with the benchmark index rising about 25%. This is in response to the recovery of the economic pandemic, which has driven corporate earnings.

But Goldman’s prediction for the index was different from that of Morgan Stanley (NYSE:), which expects the S&P 500 to move lower in 2022, with a base case target of 4,400.

Goldman anticipates that the index will surpass 5,100 before the end next year. The index closed Monday at 4,682.80

David Kostin, Goldman Sachs analyst, stated in a note that “decelerating economic expansion, tightening Fed and rising real yields indicate investors should expect modestly below average returns next year.”

According to the brokerage, net income per share will rise 8% to $226 by 2022. It had earlier raised the earnings per share forecast for S&P 500 companies to $207 from $193 for 2021, implying annual growth of 45%.

Kostin said that profit margins would rise 40 basis points to 12.6% by 2022 but will fall due to corporate tax reforms in 2023.

Kostin stated that even though real rates, or the interest rate less inflation, will increase, investor equity allocations and their record-breaking highs will not change.