Analysts have been declaring which stocks to buy and which stocks to sell since the beginning of the stock market. This is no secret. And for the most part, they all believe they are right. I say for the most part because sometimes they have little side deals with the company affecting their decisions. It is a hidden part of the stock market, but it definitely is out there. Read the fine print of research reports and notice if there is anything underhanded happening. Is there a reason they are saying to invest in a certain company? Maybe it is because it helps fill their own personal piggy bank.
The role of the analyst seems to grow every year. There are numerous shows with so-called analysts that guide you on what you should be investing in and what you should be cutting ties with. Many of these analysts are on television because they are a bit overbearing and some people find them entertaining. However, their opinion is valued because of any knowledge they have gained recently. They might say that they have heard that this stock is on the rise because they are introducing a new type of technology, so now is the time to invest in them by purchasing stocks. There are many types of these stock pitches happening on a daily basis. While jumping in on the ground floor of a company can be a lucrative deal, there are times when a person should just play it safe instead.
Here is the bottom line to stocks, though, and the analysts that make recommendations. Almost fifty percent of them will say that selling is an option, and the other fifty percent will declare you should buy more. Very few will come right out and say to sell everything in the company when it is doing well. Everyone has an opinion, and unless they are in the know or there is longtime stock certainty, these analysts are providing their best guess.
For all the credentials that different analysts have, the letters following their names are either degrees or alphabet soup, research their overall history on what they have done in the past. If I could, I would invest my money in stocks with Mr. Thurston Howell, just because he had a history of being successful. However, Mr. Howell is a made-up character from Gilligan’s Island and he can’t really assist me with this. So what is a person supposed to do?
The simple truth is your financial institution can give detailed analyst stock recommendations for the stocks you follow, but it is up to the owner of those stocks to determine if they want to sell or buy. Analysts can provide valuable information, this is their chosen career, but it is up to the client to make the final decision. Analysts seldom seem to tell their clients to sell stocks outright. They just don’t. If a client sells their stocks, are they just going to take the cash and bow out of the market? Your analysts want the money to remain in the market. So if they say sell, then they will have a new stock that you should invest in with the money.
Investors need to stand on their own two feet. Take all information with a grain of salt. If you want to be aggressive, take the risks. However, you can’t complain when it doesn’t always work out. Analysts can seriously guide investors into some great deals, but so can the ordinary everyday person if they do the research. Remember, the final decision will be yours to make!