Courtesy of Lee Adler of the Wall Street Examiner
A chart by Reuters’s Scott Barber proves that Wall Street analcysts follow the market for their cues on forward earnings. They don’t analyze. They don’t lead. They just wait for stocks to react to the latest earnings news and change their forward earnings estimates accordingly. It’s all done after the fact. There’s no research involved, no analysis whatsoever. They react to earnings reports just like clueless investors reading the news feeds.
Why do brokerage customers and the media pay any attention to this crap at all? Are they really that stupid? And when will the financial media ever report on just how worthless analyst guidance is? There are two frauds here– the Wall Street analyst earnings estimate game, and the abject failure of the Wall Street captured media to even question the fraud. When was the last time a Wall Street analyst every confronted about their track records on earnings, or anything else for that matter. In the political arena, journalists question politicians all the time. But in the financial arena, we’re watching little more than an infomercial. The past judgments, pronouncements, and track records of analysts are never questioned.
Meanwhile, the public sleeps, perfectly willing to get sheared by the con day in and day out.
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