The stock market is going nowhere as investors flock to risk-free assets offering higher yields

• The stock market is going nowhere as investors adjust to high equity valuations, according to Goldman Sachs.

• The bank said that a range bound stock market is likely with risk-free assets yielding upwards of 5%.

• Investors are flocking to money market funds, with the category seeing $117 billion in inflows this week.

Stock market investors hoping for a rally will have to be patient if Goldman Sachs' forecast proves correct.

The bank said that it expects the S&P 500 to trade in a sideways range that produces nothing but flat returns as investors grapple with unappealing valuations and juicy alternatives in the form of risk-free bonds and money market funds, according to a Friday note.

"We see two potential problems," Goldman Sachs' Peter Oppenheimer wrote. "The first is that the US equity market, long a significant outperformer, remains expensive relative to history and relative to real rates."