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 ProThis solar stock is jumping after an upgrade from Bank of America
CNBC ProYes, the Santa Claus rally is real, history shows. How December trading should go
CNBC ProThere’s a ‘great battery race’ ahead says Goldman Sachs. These stocks will win