Unrealistic expectations of stock market returns

Ask someone what they think the average annual stock market return is and at a minimum you’ll receive an answer like 8-12%. People have extremely high, unrealistic expecations because the media and financial industry over hype the market during good times.  They also tout long term averages, sighting durations that exceed life expectancy by 100Continue reading “Unrealistic expectations of stock market returns”

Overly Optimistic Wall Street

Wall Street earnings estimates for the general economy are always overly optimistic. This time last year, S&P500 full year 2015 earnings were estimated to be over $130…today those estimates have been revised down to less than $107.  (See below chart: Declining Earnings Estimates) If the current estimates hold, then profits would be at a twoContinue reading “Overly Optimistic Wall Street”