INDEX UPDATE
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This morning I CNBC interviewed Grandville who has been/turned strongly bearish, and Grandville may be right. Jim Cramer really got on his case about his call, and then Mark Haines asked Jim, later in the show, why did he get on Grandvilles case so hard.
Cramer's response, was that the point the he was trying to make is that these analyst's do not really have much consequences if they are wrong. Of course if they are wrong too often, few will listen to them, but thats not much consequence when people following them are losing money, and the analysts are still getting paid for their advice.
I remember after the market peaked in NOV that many analyst were calling for 10,000 by XMAS, and there was one analyst(bald headed, maybe from Stein Row Price), who basicly was extremely strong that everyone should buy for the run to 10000 by Xmas. Well, in Dec the market pulled back more than 5%, and afterwards that same analyst was reminded by CNBC of his strong prediction which failed. He response was basicly a JACKASS smerk, and something in line that he was early.
I have to commend CRAMER for bringing out that issue concerning strong predictions by analysts, subject to hardly any consequence if they are wrong.
I dont know if anything can be done to control it, but at least it should bring more awareness to investors.
seeya |
