3636 days ago
Some folks get terribly excited about broker research reports. Henry at JP Morgan upgrades his stance from overweight to buy, Goldman’s removes a stock from its Conviction List but still rates it as buy. You know it all means sweet FA. Sorry to market reporters who fill column inches with this stuff but it is meaningless.
Brokers earn sod all from secondary trades that is to say from funds buying or selling shares on the back of research. Hence the real purpose of paying vast sums to analysts is to churn out documents to keep corporate clients (PLCs) happy and to lure in others. As such you rarely get sell notes.
Consider this: global stockmarkets are at near record highs. Does that, on balance, make you think that the vast majority of stocks are buys with only a few sells or perhaps it is the other way round? I would suggest that with markets at record highs this is not a “fill yer boots” moment.
And so
