Friday, January 13, 2006

Can Investors Profit from the Prophets?

[2/25/06] in every single year of the new millennium, stocks rated "sell" by Wall Street have outperformed stocks rated "buy" or "hold." From 2000 to 2004, stocks that the Street told you to sell rose 19% per annum on average. Meanwhile, the "buys" and "holds" rose just 7%.

[1/13/06] On the other hand, John Dorfman relays this. "For eight years, I've been tracking results for the four stocks analysts most adore at the start of each year, and the four they just can't stand. The Adored Stocks have averaged a loss of 4.5 percent. The Despised Stocks have lost 2.8 percent on average. The Standard & Poor's 500 Index has easily beaten both groups, averaging a gain of 6.4 percent."

[9/22/05] Does a portfolio of stocks recommended by analysts outperform the market? A contrarian or skeptic might say no. But this study says yes. [chucks_angels message dated 9/17/05, 4:51 AM]

No comments: