Comments on: Why are analysts so wrong? http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/ Insights behind the investment headlines Wed, 16 Nov 2016 21:43:49 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Casper Lab http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2575 Mon, 07 Sep 2009 07:14:56 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2575 Good points CBFE. Anon, not sure that we should equate analysts to economists. I also have reservations about ‘Economics is about looking at the past, and analysing the present’. If that is the case, what does that achieve – throwing more rocks at the dark ?

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By: Dennis http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2427 Wed, 02 Sep 2009 17:55:17 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2427 LOL IF they knew what they were talking about they would all be on their yachts in the south of France. Dohh!

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By: CBFE http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2396 Sun, 30 Aug 2009 09:25:44 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2396 In one of my blog posts (click on my name) I ask why investors don’t question the relationship between analysts and companies more in-depthly.

We know that credit rating agencies overvalued certain financial products during the bubble economy of the past decade. Now think about this. When a company reports that it beat analyst expectations, it gets a big PR boost. Lately, beating analyst expectations is the silver lining that is letting corporations get away with massive losses and dreary forecasts. What do you think the average analyst is more worried about? His reputation among lowly investors? Or his reputation in the finance industry and his relationship with various corporations.

I’m seriously befuddled why, after what we’ve seen happen with CDOs and the credit rating agencies, this question isn’t being asked with greater seriousness?

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By: Kevin http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2381 Wed, 26 Aug 2009 19:05:53 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2381 Is anyone surpised? The market is now driven by emotions, not fundamentals.

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By: Anon http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2378 Wed, 26 Aug 2009 02:17:24 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2378 Economics is about looking at the past, and analysing the present. It has never been, nor has it claimed to be, a way to predict the future.

All it can do is determine current trends, based on the data available. If you use economic analysis for speculation purposes, and get burnt, then it was your own fault.

When this banking crisis began, the economists were on the horn immediately. Those who were smart listened, and got out before it got too bad.

For that matter, most economists knew this banking crisis was coming years ago. They just couldn’t say when the crunch would happen, which is why nobody listened to them.

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By: dvictr http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2373 Tue, 25 Aug 2009 13:23:08 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2373 my view is that these industry/sector analyst take market risk too lightly and ignore global macro factors

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By: JF http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2366 Mon, 24 Aug 2009 23:06:19 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2366 For sceptics of pundits who haven’t seen the “Peter Schiff
video”: a pretty often watched video exists, a flashback
to news shows 06 / 07. It’s an example of pundits making
incredibly wrong forecasts and recommendations; almost a
must – see.
http://www.youtube.com/watch?v=2I0QN-FYk pw

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By: Beatty Hanslinger http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2365 Mon, 24 Aug 2009 21:01:03 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2365 The analysts that cover NYSE:UDR are obviously well paid by the company they cover. Prior to the 2Q Earnings Conference Call, we submitted questions from class-action members from California to all the usual UDR analysts. Since the “ordinary folk” were not allowed to ask questions, we implored the analysts to speak up on our behalf. (See www.udrfraud.com for more details) Shame on them. No one even came close. The questions asked by the analysts were the most inane, irrelevant and scripted questions David Messenger (UDR CFO) could come up with. Why can’t normal folks ask questions? Why are we relegated to the same tired questions over and over and over again?

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By: notananalyst http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2364 Mon, 24 Aug 2009 20:21:22 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2364 By what metric do you decide if an analyst is right or wrong? What margin of error do you give analysts?

Having spent a good amount of time on Briefing, you would notice that a company can beat or miss estimates while being one penny off on a 2$-3$ basis. While I agree that analyst on average do not get it right, I find the 9% figure somewhat questionnable as a distintcion between “analysts are right” and “analysts are off” can be very subtle.

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By: Hate Analysts http://blogs.reuters.com/globalinvesting/2009/08/24/why-are-analysts-so-wrong/comment-page-1/#comment-2363 Mon, 24 Aug 2009 20:01:34 +0000 http://blogs.reuters.com/globalinvesting/?p=2555#comment-2363 I am a rookie in stock trading but I have observed the same. The stock that they downgrade goes down on the day they anounce the results of their research but it recovers and just does fine after a few days? Do I smell something fishy here? :-)

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