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Why Analysts’ Stock Recommendations are SH*T

6 pointsby harrychencaalmost 11 years ago

2 comments

PaulHoulealmost 11 years ago
To avoid the scatology, I&#x27;d start with the efficient market hypothesis, which isn&#x27;t perfectly true, but is pretty close to being true.<p>It&#x27;s hard to predict the stock market. If there is a lot of hating on a stock, the value is probably low to begin with, which means the stock has room to go up.
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ScottBursonalmost 11 years ago
If I remember correctly, Jim Cramer&#x27;s suggestion for how to use analyst recommendations is: don&#x27;t buy a stock that is recommended by four or more analysts, and if you own it and a fourth analyst starts covering it, sell. It may not be going down, but its best days are behind it.
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