Seeking Alpha (January 4)
“While analysts on Wall Street are confident the bull market will continue uninterrupted into 2022, there are more than enough risks to derail that market outlook. Importantly, none of these independently suggest a significant correction is imminent. However, the risk is that they will undermine the bullish ‘psychology’ of the market.”
Tags: 2022, Analysts, Bull market, Confident, Correction, Derail, Imminent, Market outlook, Risks, Undermine, Uninterrupted, Wall Street
Bloomberg (August 13)
“It seems like Japan’s big recovery is always a quarter away.” The economy may just barely manage growth in the second quarter, but the slow vaccination rollout and ongoing surges mean “the bounce in consumer spending that analysts had been forecasting will have to wait even longer.” Japan has earned “the dubious distinction of being the only G-7 economy to have its growth outlook for this year cut by the International Monetary Fund.”
Tags: Analysts, Bounce, Consumer spending, Economy, G-7, Growth, IMF, Japan, Outlook, Q2, Recovery, Surges, Vaccination
LA Times (July 16)
“The financial crisis created by the pandemic prompted executives at hundreds of America’s largest publicly traded companies to voluntarily lower their own base salaries. They made a point of announcing these cuts in news releases and earning calls with analysts.” In many cases, this was a gimmick. In one egregious case, Christopher Nassetta, Hilton’s Chief Executive “opted to forgo his entire base salary for the rest of the year,” amid furloughs and job cuts, but his “compensation package more than doubled to $55.9 million in 2020, compared with $21.4 million in 2019.”
Tags: Analysts, Earning calls, Executives, Financial Crisis, Gimmick, Hilton, Nassetta, News releases, Pandemic, Publicly traded, Salaries
Washington Post (April 2)
“At the onset of the pandemic, analysts feared it would mark a disaster for women.” All of their “concerns proved to be true. But the social damage wrought by what’s been dubbed the ‘shadow pandemic’ may be felt for decades to come.”
Tags: “Shadow pandemic”, Analysts, Concerns, Disaster, Onset, Pandemic, Social damage, Women
Wall Street Journal (March 29)
“The downward trend in personal bankruptcies bucks predictions by analysts and economists that disruptions from Covid-19 lockdowns and restrictions early in the pandemic would lead to a sharp increase in filings. Economists and bankruptcy lawyers say federal suspensions of evictions, home foreclosures and student-loan obligations have helped limit bankruptcies—though they worry bankruptcy rates could go up after aid ends.”
Tags: Analysts, COVID-19, Disruptions, Downward, Economists, Evictions, Foreclosures, Lockdowns, Pandemic, Personal bankruptcies, Predictions, Restrictions, Student loans, Trend
Reuters (January 29)
“Equity analysts are still counting on a speedy reopening. They expect the 1,585 companies included in the Global MSCI Index to report 6% higher net profit this year than they did in 2019, and 21% higher earnings in 2022.” Constituents are “still valued on an average multiple of 21 times this year’s forecast earnings, far above a long-term average of 16 times. With the path out of lockdowns looking uncertain, such exuberance is likely to end in disappointment.”
Tags: 2019, 2022, Analysts, Disappointment, Equity, Exuberance, Forecast earnings, Global MSCI, Lockdowns, Multiples, Profit, Reopening, Uncertain
South China Morning Post (April 17)
“China’s economy shrank by 6.8 per cent in the first quarter of 2020, the first contraction since the end of the Cultural Revolution in 1976, confirming the economic damage done by the coronavirus pandemic.” The massive contraction “was worse than predictions of minus 6.0 per cent from a survey of analysts’ forecasts by Bloomberg.”
Tags: Analysts, China, Contraction, Coronavirus, Cultural Revolution, Economic damage, Economy, Pandemic
Institutional Investor (March 20)
“The coronavirus pandemic has pushed the world’s economy into a slowdown that may lead to default rates jumping as high as 10 percent in the next twelve months, according to analysts at S&P Global…. The sudden stop in global economic activity, the recent drop in oil prices, and record market volatility are all putting pressure on the creditworthiness of companies.”
Tags: Analysts, Coronavirus, Default, Economy, Oil prices, Pandemic, S&P, Slowdown, Vlatility
Wall Street Journal (November 4)
“Humble CEOs don’t inspire much confidence among financial analysts—but that might be good news for people who invest in the CEOs’ companies.” According to a recent study, “analysts tend to significantly underestimate the earnings potential of companies run by humble chief executive officers. That leads to artificially low earnings forecasts from the analysts, which the firms can then more easily meet or beat.” On average, this “humble discount” results “in at least a 7% increase in total shareholder returns annually.”
Tags: Analysts, Beat, CEOs, Confidence, Discount, Earnings forecasts, Earnings potential, Humble, Inspire, Shareholder returns, Underestimate
CNN (April 11)
“Investors will be in wait-and-watch mode until polling ends and India’s new leader is elected on May 23. Whoever wins, business is unlikely to get the kind of boost seen in the last five years…. Still, analysts expect India to remain open to global investors no matter who is at the helm. And the country’s huge market of 1.3 billion people may simply be too tempting to pass up.”
