Wolf Frankula
(118 posts)
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Mon Oct-11-10 04:38 PM
Original message |
Question about Wall Street Analysts |
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Every day I hear about the following. "The company had record profits, but did not meet the expectations of Wall Street Analysts."
My question is: "Who died and left these punks boss?"
Wolf
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DJ13
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Mon Oct-11-10 04:46 PM
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1. They're not analysts, they dont actually analyze |
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Think of them as carnival barkers trying to lure the dirty unwashed masses inside the tent known as the NYSE and it will make sense.
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Gin
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Mon Oct-11-10 04:57 PM
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2. a while back I listened to analysts on TV say that "they" set wall street |
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projections....then... the companies have to jump through hoops to meet them....
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Common Sense Party
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Mon Oct-11-10 05:30 PM
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3. I respectfully disagree. |
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Analysts analyze--and buy lots of other research from other analysts and then analyze that.
Then the analysts write their reports for their brokerage firm employers and issue a buy, sell or hold report (during the 1990s bubble heyday, 90%+ of their recommendations were "buy").
Then the retail stockbrokers go after the unwashed masses. The institutional brokers go after the pension funds, mutual funds, insurance companies, etc.
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DJ13
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Mon Oct-11-10 05:37 PM
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5. That was the system in place before the algorithms took over |
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With 70% of todays trades being done based on mathematical formulas that ignore T/A almost entirely the analysts dont really have as much say in formulating investment plans for the major brokerages that they once had.
In many situations they are reduced to being a sales person now.
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Turbineguy
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Mon Oct-11-10 05:31 PM
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4. Just be glad they will not |
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be working on the next plane you'll be flying on.
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cbdo2007
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Mon Oct-11-10 05:41 PM
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6. All I know....is that if you read any stock book out there on how to choose stocks... |
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they all say, "Don't listen to Wall Street analysts."
Basically, they are people at the large investment firms who are trying to find relatively safe, yet somewhat profitable companies for them to suggest for their clients. Therefore they are should not be trusted because you never know the *real* reason they want you to buy X stock.
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Tue May 14th 2024, 04:18 PM
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