This chart comes from the McKinsey Quarterly from back in April 2010 and shows how inaccurate equity analysts have been when predicting Earnings for S&P500 companies over the last 25 years….basically far too bullish and no where near accurate. So just like the last post, the key learning is to not take too much notice as to what analysts predict when it comes to the stockmarket as they are pretty much guaranteed to be wrong.
The biggest concern to come out of this chart is that they may be more prone to overestimation….might relate to their remuneration incentives…I don’t really know…just saying