Dollars and Jens
Saturday, October 18, 2003
Analyst Recommendations
The most interesting part of the Bill Donaldson interview on Rukeyser (which I mentioned earlier) was the following question by Marty "Eeyore" Zweig:
Bill, Zack's just came out with a study: over the last four years the stocks most favored by Wall Street analysts have gone down 30%, and the 600 stocks that were least favored have gone up 45%. We all make mistakes -- that's not the point. Mutual Funds have to give out track records -- do you think that there should be more transparency, and that analysts should have to give out their track records?I looked for this study on the web, but haven't found it. If you know more about it, please let me know. It has seemed to me that analyst recommendations have tended to be excellent lagging indicators of stock performance.
Incidentally, Donaldson gave a non-committal answer approximating, "sure, why not?"
