From John Paulson’s call for a collapse in Europe to ()’s (MS) 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 () foresaw wider swings in equity prices. All of them proved wrong last year and investors would have done better listening to () Chief Executive Officer Lloyd C. Blankfein, who said the real risk was being too pessimistic.