... the Stock Market and Financial Analysts.
Analysts apparently study different companies' performance, listen to conference calls offered by the companies they study, think long and hard, and then make predictions about the future performance of said companies. These predictions are usually tied to quarterly financial reports.
The end of the quarter arrives and the companies reported numbers do not match the predictions of the the analysts. So what happens? The value of the companies declines in that their stock sells for lower prices. And the analysts start working on their predictions for the next quarter.
Wait a minute! It was the analysts who were wrong! The companies did what they would have done with or without the reports from the analysts.
Why are the companies punished by seeing their stock fall in value when it was the analysts who were wrong in their predictions? Shouldn't folks stop using the analysts who get it wrong instead.
Tags: Wall Street, Stock Market, Analyst, Quarterly, Reports
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