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Analyst earning forecasts are known to be optimistically biased. Here's a paper discussing this: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=971027 http:
by rm999 14y ago
Analyst earning forecasts are known to be optimistically biased. Here's a paper discussing this: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=971027 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=971027
- smackfu 14y agoWhich should theoretically let you "put your money where your mouth is", since if analysts are systematically wrong, and the prices move in response to analysts...
- jamesaguilar 14y agoI think you'd have to test the latter assumption too before you go betting against them.
- rm999 14y agoAlthough I think most serious investors either ignore analysts or know to adjust for their biases. Some of the real victims are lazy academics, as the paper discusses.
- jivatmanx 14y agoI wonder if this is a variation of the analyst theme of never, ever give a stock a sell rating?