Calling analysts: Industry = sum-of-firms

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Over-investment causing the China-bust started long ago, which early transparency could mitigate. Analysts should publish industry forecasts that match the sum of their firm forecasts. That way, unreasonable projections would be less credible, early signs of over-investment would show up, investors could act accordingly, and maybe we would see less of analysts’ persistent over-optimism – and reduced industry-and-economy booms and busts. Meanwhile, we still wait for the CFA-Institute training to explain how strategy leads to performance.

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