Question

What does it mean to say that stock market investors are forward-looking?

Answer 1

Stock market investors are forward looking in the sense that investors in the stock market invest with an eye on future.

They tend to anticipate the future economic movements with respect to economic growth, world events impacting world economy, corporate earnings etc.

They put their money with a belief that future events will turn out as anticipated by them and thus be able to earn attractive returns.

So, this predictive nature with respect to future on part of stock investors while investing makes them forward looking.