How good are stock market earnings forecasts?
Well, if you go by our chart below, which we constructed by sampling data we obtained from S&P roughly one-year apart (at the dates indicated) and mostly looking one-year-ahead in time, the answer is: not good at all!
The moral of the story: future earnings projections are not necessarily very good indications of actual future earnings!
Political Calculations is a site that develops, applies and presents both established and cutting edge theory to the topics of investing, business and economics.
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