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Chief executives sharply reduce their expectations.
As a group, stock analysts have been slow to reduce their expectations of future corporate profits.
"They're liable to reduce their expectations of themselves and relabel themselves as dumb," Dr. Felner said.
If other reports confirm the weak reading in yesterday's employment report, analysts are likely to reduce their expectations for profits, and stocks could suffer as a result.
If company insiders are able to misuse shareholders' funds at will, would-be investors will reduce their expectations of future cash flows and thus attach lower valuations to stocks.Other allegations are even more serious.
An 1843 work, "Late Afternoon with Numerous Skaters by a Town", sold in April 2006 for €1.25m ($1.56m) against a top estimate of €350,000, whereas another winter landscape sold the following October for €1.15m against an estimate of €500,000.Collectors who were happy to sell during the boom are now being leaned on by the auction houses to reduce their expectations.
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Certainly not businesses, which are reducing their expectations based on sluggish demand.
Car sales declined last month, airline travel has dropped and retailers have reduced their expectations of growth for the year.
Most groups that plan to hold such an event before the end of the year have reduced their expectations, the report says.
The minutes of the June meeting of the Federal Open Market Committee, released this week, said most members had reduced their expectations of employment growth.
Even though some brokerage firm strategists reduced their expectations for overall corporate earnings next year, most of the big firms did not lower investment ratings on any individual United States stocks.
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