For some reason, years ago "Wall Street" shifted from reactive
mode to proactive mode (trying to predict the future). That
meant a move away from trading based upon steps the Fed
actually takes to a model that transacts
based upon
"expectations". Similarly, analysts no
longer evaluate company performance based upon a trend in earnings
(actual v actual), but rather, compare actual earnings to
expectations. The problem is, Wall Street is anything but
prescient.
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For some reason, years ago
these comments are spot on
Posted by RichieD on 14th of Sep 2022 at 07:37 am
For some reason, years ago "Wall Street" shifted from reactive mode to proactive mode (trying to predict the future). That meant a move away from trading based upon steps the Fed actually takes to a model that transacts based upon "expectations". Similarly, analysts no longer evaluate company performance based upon a trend in earnings (actual v actual), but rather, compare actual earnings to expectations. The problem is, Wall Street is anything but prescient.