Making increasingly more accurate future stock market price predictions has long been a master objective of portfolio managers, fundamental investors, exchanges, and traders alike. While many long-term investors and short-term traders have somewhat different goals for making price predictions and tend to prefer other analytical methods, both have strategies and models that depend heavily on forecasting returns and making accurate price expectations predictions. Having good price information is essential, but it is less critical than some of the applications derived from price expectation information. No price expectations ever are perfect because markets are very complex adaptive, and evolutionary, chaotic systems that are by nature impossible to predict and have some perpetually novel, not repeatable forces at play.
