Pathways Advisory Group, Inc.
Jeff Karst, CFP®
I promise this won’t be an overly political post. Regardless of how you feel about the recent election, one thing that stood apart was that the polls were wrong. The election results were much closer than most polls were predicting.
Many headlines stated how wrong the polls were. What if that wasn’t the headline though? What if the headline said this? “The votes
have been tabulated and voters got it wrong.” Or how about this? “The voters
didn’t get the message as to who is supposed to win.”
These headlines seem silly.
But this is what happens when it comes to stock pricing. We’ll see headlines such as “Apple stock down
5% due to underperforming estimates”. Did Apple really underperform? Or
were the estimates simply wrong?
Company estimates are like the polls – they are a prediction
of the future. In either case those
predictions can be wrong.
I get frustrated with the financial media constantly. We all have to remember what the job of the
financial media is. It’s not to educate
their viewers/readers. Their job is to
sell advertising.
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