Market returns are much worse when inflation is high, Goldman says. Here's how to play it

Adobe Systems signage is displayed outside of the company's office in San Francisco, California, U.S
David Paul Morris | Bloomberg | Getty Images

Inflation could be coming, and if history is any gauge, that might mean lackluster market returns, according to Goldman Sachs.

"The stock market tends to perform better during periods of low inflation than when inflation is high," Goldman's chief U.S. equity strategist, David Kostin, told clients on Monday.

More In Investing trends

CNBC ProGoldman likes these stocks but the rest of Wall Street does not
CNBC ProBlack Friday stocks: Wall Street loves these retail names into the end of the year
CNBC ProThe Black Friday trade: Wall Street's stock winners for the holiday season