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Do Analysts’ Predictions of the Market Benefit Investors or Does It Create Confusion?

• The ability to predict the movement of the stock market is an important ingredient in investing.
• So, the first question to ask is what is the basis of the prediction:
  • Earning projections?
  • Interest rate projections?
  • Geopolitical or political events, such as imposition of tariffs?
    
    
• Next, is the prediction based upon short-term or long-term investing advice?
• Market timing, i.e. when to invest and when to exit the market, is often influenced by the analysts’ predictions.
  • Market timing has proven to be almost impossible since there are so many factors that move the market in one direction or another.
  • Volatility is a part of the market and long term investors should adjust their investment strategy when economic conditions change.
    
    
• Analysts’ predictions are useful tools for the investor to gain information; however, the market is comprised of many different elements and predictions are usually based upon a specific set of circumstances.