Stockmarkets: ’This isn’t the time to be a hero’

The equity rally has stalled as the credit crunch begins to seep through to the wider economy. And any bullishness is 'bordering on the delusional', given that a prolonged downturn is likely…

Analysts "only change their minds when there is irrefutable proof that they are wrong, and then they only change their minds very slowly", says James Montier of Socit Gnrale.

His chart (below) shows how "analysts lag reality": they have consistently been behind S&P 500 earnings' deviations from the long-term trend over the past decade.

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