We're about to see a whole lot of projecting

[Silver Ridge Market Report Logo] Dear Reader, Earnings are one of the most important driver of stock prices in the long run. So, analysts’ estimates for where earnings are headed in the near future can have a huge impact on where stock prices go.. But even the most well-resourced professionals are not great at accurately predicting earnings. As time progresses and more information emerges, analyst’s predictions are refined and modified. As a year progresses, you rarely see estimates that start and ends at the same level. A few observations can be made here: • Analysts always expect growth. No matter how much the world has changed and no matter where we are in the business cycle, it’s almost always the case that the average analyst expects S&P 500 companies to generate high single-digit to low double-digit EPS growth in the coming year. • What actually happens can be very different from what’s expected to happen. No one could’ve predicted the COVID pandemic EPS crash — and next to one could’ve predicted the magnitude of the subsequent EPS recovery. The same thing can be said about how EPS crashed and surged during the global financial crisis. • What actually happens is usually growth. Even during disappointing years, you often still walk away with EPS growth, albeit at a modest level. • Downward revisions don’t necessarily mean falling stock prices. There are lots of years over the past decade in which earnings estimates came down, but the S&P 500 rallied. Keep all of this in mind over the next few weeks as Wall Street’s top strategists unveil their outlooks for the stock market in 2023. We’re long-term investors. One-year forecasts shouldn’t play too much into how you think about your investments. Editor, Silver Ridge Market Report Andrew Graham [A Graham Signature] Sponsored P.S. [They Watch The Fed - We Do This Instead]( The heads of the Federal Reserve are scrambling. They are trying to “fix” this market the only way they know how… and it’s not working. Investing based on their latest rate hikes or announcements is a fool’s play. [There's a Better Way]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( 406 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 406 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 406 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@e1.profitraven.com or click the unsubscribe button below. Silver Ridge Market Report is now brought to you by ProfitRaven.com a thought leader in the financial publishing and alternative investment idea space. All rights reserved. Republishing Prohibited without expressed written consent of 406 Media, or their designated agent. 30 N Gould St, STE R, Sheridan WY 82801 This e-mail has been sent to {EMAIL}, [click here to unsubscribe](.