Financial analysts are smart people. They earned PhDs from top universities, work long hours and are paid millions.
They also have unlimited budgets, access to more data than they can consume and an army of geniuses working for them to crunch the numbers. Yet they appear to be terrible at doing what they’ve been hired to do, which is forecasting annual returns.
The chart below compares the average annual forecast for the S&P 500 (blue bars) to the actual result at year end (purple bars). These…
