Sage Advice Quarterly Market Review 1Q2002

In the realm of economic forecasting, nothing is more embarrassing than for the prognosticator to assign the wrong sign to his or her prediction. Needless to say, a wide swath of red faces covered the forecasting community last week, as the commonly-held view that the economy would contract in the fourth quarter was flipped on its head by the government’s first estimate of GDP for the period.