Adonis Diaries

Posts Tagged ‘financial analysis market

Handle Expectations with care

Expectations are intangibles, but their effect is quite real.

There is no such thing as “a bad guess, my mistake” in the financial analysis market.

One lousy cent lower than analysts’ forecast and the shares take a plunge.

Many companies bent over backward to meet financial analysts’ predictions. To escape from this Terror, companies started to publish their own estimate labelled “earning guidance

The companies shot themselves in the foot as the analysts were heeding only these internal forecast, and studying more closely the companies performance and errors to boot.

Closely linked to personal expectation  is the placebo effect.

Placebo are pills, treatments and therapies that are unlikely to improve health, but do so anyway.

Apparently, one third of patients who are given placebo get better because the biochemistry of the brain is altered by motivation.

Obviously, if you have a dead brain or a damaged brain (Alzheimer) then placebo has no effects whatsoever.

Teachers who are told that the next  bunch of students have high IQ levels will do their best in order reach the performance expected from these students. These average students actually improve a lot at the end of the year.

Raise your expectations and those you care for in order to increase motivation in matters that you can control.

Best to anticipate surprises in order to better shield yourself from their nastiness.

Read The Art of Thinking Clear

 


adonis49

adonis49

adonis49

June 2021
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