<< the really sad thing is, most analysts don't have a clue what is happening either, and they are getting big bucks to give us advice???? >>
Don't kid yourself. Those analysts know exactly what they are doing, and they are very good at it. Frequently, this becomes simply a matter of taking orders from higher-ups at the firm, who in turn are (directly or indirectly) taking orders from their big clients.
He who pays the piper calls the tune. Analysts do not work for the general public, or the retail investor. They do not exist to provide us with free, accurate information. Sometimes that may happen (usually way too late to be actionable), but more often the intent is to disguise the moves of their big clients (who they do work for), or to outright mislead.
I pay very little attention to analysts, but sometimes they can be a very good contrarian indicator, especially when they are trying to disguise their motives and the moves of their big clients. That's not to say that analysts cannot move a stock, but I'm more interested in what the real movers of the stock are up to, not those who buy and sell reflexively in response to analyst blather.
JMVHO, as always......
WS |
