Optimistic analyst forecasts do not reflect the full economic slowdown

In my mind, European stock markets do not yet reflect the full impact of slowing global economic gro...

In my mind, European stock markets do not yet reflect the full impact of slowing global economic growth and the impact of this on company profits. Analysts are still forecasting around 4% profit growth for 2008 and 14% for 2009, which I feel are far too optimistic, bearing in mind that this current profit cycle has been running from early 2003. My own expectations are for -9% and -7.5% respectively, which I do not think are overly pessimistic. Other than slowing economic growth, European companies are also burdened by four other major negative factors. Firstly, the strength of the euro wh...