Wall Street’s forecasting dilemma: Market outperforms again – Jonathan Levin

Wall Street strategists have repeatedly underestimated the US stock market since the pandemic, leading to a scramble to adjust projections later in the year. The dominance of a few large-cap growth companies, coupled with a stronger-than-expected economy, has challenged traditional forecasting models. Despite the market's high valuations, fundamentals remain robust, suggesting that upward revisions may continue, and a reckoning is not imminent as strategists brace for further adjustments.

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By Jonathan Levin

Since the pandemic, Wall Street strategists have repeatedly underestimated the performance of the US stock market in their annual projections, leading to a mad dash to boost their outlooks in the back end of the year.

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