So if you are so smart, why aren’t you rich?

Why do so many stock market analysts and economists get it so wrong?

According to the Pragmatic Capitalist ” At the beginning of 2008 the average analyst was calling for $90 in total S&P 500 earnings.  The final figure came in at $49.51.  They missed by nearly 50%!   As I’ve mentioned repeatedly here at TPC, the entire analyst community on Wall Street is flawed.  Most analysts are selling a service or pushing a specific firm’s long-term investment beliefs.  This was well displayed in the 90’s and despite regulatory changes, continues today.”

The value of technical analysis is that the charts don’t lie. What you see is what is. Yes you can read a chart wrong and that is your problem but on balance and over time technical analysis provides ” another view” and a check against runaway wall street fodder.

This entry was posted on 8. July 2009 at 02:43 and is filed under Investment Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.