Thursday, March 12, 2009

where's the love?

Schwab researchers have examined the performance of analysts’ recommendations over a long period of time. We’ve found that the stocks rated best by analysts (what we’ll call “loved” stocks) have returned only 5.4% per year, averaged over the period from 1994 through 2008. But the worst-rated stocks (“unloved” stocks?) returned 10% per year over the same period.

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