From John Paulson’s call for a collapse in Europe to Morgan Stanley’s ($26.32 0%) warning that U.S. stocks would decline, Wall Street got little right in its prognosis for the year just ended.

Paulson, who manages $19 billion in hedge funds, said the euro would fall apart and bet against the region’s debt. Morgan Stanley predicted the Standard & Poor’s 500 Index would lose 7 percent and Credit Suisse Group AG ($28.69 0%) foresaw wider swings in equity prices. All of them proved wrong last year and investors would have done better listening to Goldman Sachs Group Inc. ($164.15 0%) Chief Executive Officer Lloyd C. Blankfein, who said the real risk was being too pessimistic.