It fascinates me that so many investors continue to believe that professional money managers and market strategies can predict what’s going to happen in the financial markets. (The majority of the evidence shows otherwise). So, these investors look for and listen to the soothsayers that claim to know what's going to happen.
Like my previous blog "Top Stock Picks for 2015", we are going to track the actual results of 10 of the most respected and highly compensated market strategists on Wall Street.
The table below shows the strategists’ S&P sector picks (noted with ‘+) and pans (noted with ‘-‘’) for 2015.* The strategists predict that information technology (+8) will be the top performing sector and utilities (-7) will be the worst.
We will see. I plan to do quarterly check-ins to see how these strategists do collectively.
I predict — pun intended — the quarterly report card will show that these “experts” get it wrong and that their forecasts are worthless, except for the entertainment value.
* Barron’s. Published Dec. 15, 2014.