Earnings Forecasts

“Lots of downward revisions through February. I believe they are consistent with subpar global economic growth. Keep in mind that analysts tend to be too optimistic, so their estimates tend to be revised downwards. Nevertheless, NERIs tend to be positive when an economy is growing fast, especially during economic recoveries. They can be negative when economic growth is steady and middling. They always go negative during recessions since industry analysts aren’t any better than economists at foreseeing economic downturns.”

MSCI Earnings Revisions