Financial forecasters are in a race to call the bottom to the bear market. And just as on the way up, when analysts competed for attention with their forecasts of bigger and bigger gains, the financial pundit class now seems compelled to out-gloom the next guy.
“To make a crazy forecast today is not crazy,” said Owen Lamont, a former professor at Yale who has studied economic forecasting. “It’s not crazy to predict the Dow is going to 2,000. That’s in the realm of possibility.”
Indeed, in an era of 1,000-point daily swings in the Dow and 30 percent losses in the stock market, prescience is at a premium — and the dividends of a high-profile correct call can be immense.
from the New York Times
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