Companies Guiding Lower vs Higher

Many current active traders and hedge fund managers think that they have an edge because they can "see through the hype" from analysts and companies.  At "A Dash" we have tried to point out that analysts and company guidance have changed since the excesses of the bubble era.  Sometimes we wonder if anyone else has noticed, or if they are all fighting the last war.  We are therefore relieved to see this piece from Ticker Sense.  Dismissing forward earnings projections could be a serious mistake.

Link: Companies Guiding Lower vs Higher.

Below is a historical chart of the spread between the number of US companies issuing positive guidance versus negative guidance. We took the 1-month average of the daily spread and calculated it on a rolling basis. Since 2000 there have…

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Companies Guiding Lower vs Higher

Many current active traders and hedge fund managers think that they have an edge because they can "see through the hype" from analysts and companies.  At "A Dash" we have tried to point out that analysts and company guidance have changed since the excesses of the bubble era.  Sometimes we wonder if anyone else has noticed, or if they are all fighting the last war.  We are therefore relieved to see this piece from Ticker Sense.  Dismissing forward earnings projections could be a serious mistake.

Link: Companies Guiding Lower vs Higher.

Below is a historical chart of the spread between the number of US companies issuing positive guidance versus negative guidance. We took the 1-month average of the daily spread and calculated it on a rolling basis. Since 2000 there have…

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