I'm not sure where retail investors got the idea that Wall St analysts exist to pick stocks. That's not at all their job. Their job is to be knowledgeable about stocks so that institutional investors can call them and talk about companies. Then, if an institutional investor decides to buy or sell a stock, they are more likely to do it through the trading desk that helped them get smart on the name, thereby generating fees.
Wall St analysts are NEVER expected to actually pick good stocks. They rarely put Sells on a stock because it makes their bank look bad (especially if the investment bankers are trying to pitch a deal to that company). Institutional investors know this - I talk to Wall St analysts regularly as they are quite knowledgeable, smart people. But I never, ever even bother looking at what their actual recommendation is. They exist to help real investors learn and make trades. That is it.
Submitted November 20, 2018 at 12:11AM by ShowMeTheMoney__ https://ift.tt/2DLG6Ft
