5 Comments

Without taking anything away from your point, I think the bigger issue is that this data reflects just two quarters. that's a difficult timeline to be judging sellside performance, everything else notwithstanding.

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author

I agree, but I have written in the past about longer time horizons and analysts are pretty bad at that too. Indeed, they may get worse the longer the time horizon, while macro forecasts ~(outside of currencies and interest rates) tend to get better the longer the time horizon.

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Oct 15Liked by Joachim Klement

(1) Howard Marks says he ignores Macro. Fundamentals count more. (2) However, if the trend is downwards you take more care. (3) For an intended stock buy you may use Technical Analysis to identify a break out through resistance.

It is not always easy to identify a change in Macro.

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Oct 15Liked by Joachim Klement

Perhaps analysts outperform for current quarter forecasts because companies have a pretty good idea how their current quarter is looking, and they share this information on the form of "guidance"

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author

That's exactly it.

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