“Forward earnings” and PEs are biased, create unduly upbeat valuations, weaken the quality of earnings – and thus eventually induce losses. It’s “an article of faith among Wall Street research departments,” wrote David Dreman in Contrarian Investment Strategy (1979): “nothing is as important in the practice of security analysis as estimating the earnings outlook.” For … [Read more...] about How “consensus expectations” harm your financial health
Chris Leithner