Don't Trust the Analysts

This is another chart from the presentation I was working on. This is a chart of the projected GDP growth for 2009. As you can see in June the consensus was GDP growth over 2%. 7 months later all 55 analysts polled by the Wall Street Journal changed their minds and now agree that the economy is going to shrink by .2%. It seems to me that Analyst projections are a lagging indicator.

Source: WSJ.com