by Greg Guenthner
Daily Reckoning
Earnings season is a complete waste of time.
For whatever reason, investors seem to think that earnings “beats” matter.
But they don’t…
The big problem with earnings, according to MarketWatch’s Jeff Reeves, “is that the game is rigged, and that earnings ‘surprises’ aren’t much of a surprise at all for Wall Street.”
What Jeff means is that most companies usually top analyst forecasts. That’s how the game is played. They set the bar so low that even the weakest reports tend to beat the magic number. Ta-da!