Goldman is notorious for beating guidance and forecasts, purportedly planting lower expectations with analysts in order to throw off the scent. The market will be keenly focused on seeing if Wall Street's golden boy can pull a rabbit out of the hat yet again, considering high expectations for greater-than-expected write-downs and increased systemic risk during the last quarter. Highlighting volatile investor sentiment is the noticeable increase in Goldman options volatility, signaling wide-ranging expectations. Given the extent of which systemic risk struck the financial sector in Q4, Goldman falling short of earnings expectations could come to fruition.
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