Markets Can Predict People

Forbes reports:

People can’t predict markets but markets can predict people. Forecasts about future economic growth have no impact on the future performance of the stock market while the past performance of the stock market has an impact on what forecasters believe about the future. The Survey of Professional Forecasters is the oldest quarterly survey of macroeconomic forecasts in the United States. The survey began in 1968 and was conducted by the American Statistical Association and the National Bureau of Economic Research. The Federal Reserve Bank of Philadelphia took over the survey in 1990. About 50 economists participate in “The Anxious Index.”