"An investment in knowledge pays the best interest."
I love reading Wall Street Banks "predictions" at the end of each year, it makes me laugh. For 2018, the banks came out with nice safe predictions for the S&P 500. lets take a close look
With the S&P 500 closing 2017 at 2673.71, we can easily calculate their predictions in %.
Based on the numbers above, Wall Street "Predicts" that we'll see the market goes as high as 12.2%, and as low as -0.81 %, giving us a median of about 5.66%..........
This is what makes me laugh. On one hand, none of the banks are predicting a major correction despite the market being in a bull market for more than 9 years. On the other hand , despite the Trump tax cut, low unemployment , I'm surprised their "predictions" aren't more aggressive. Instead, they play safe.
Here at Passivestor, we stay away from forecasts and predictions, unless we figure out how to build a time machine ? We rather react to market events using simple systematic rules , than predict what the market will do next. This method has been extremely successful for me for more than a decade now. Do not take Wall street predictions too seriously , statistically they are bound to be all wrong.