An Indian Civilizational Perspective

Bullish Analysts shoot all over on the Banks and finance!

The financial markets are in bad shape and things aint getting better. Today Merrill Lynch slumped to the biggest loss in its 93 year old history! It was pummelled by almost an $8 billion liabilities from the subprime credit mess in the market. Look at this video and see how the top analysts baulk when this guy Peter Schiff puts down the financial stocks! As for Goldman Sachs – the stock that everyone seems to be recommending in the clip – here is today’s news:

‘It was a bad quarter and worse than anything we would have expected,’ said Goldman Sachs (NYSE:GS) analyst William Tanona in a research note.

This is one reason why I hate any analyst on the TV or media… they have very little idea what they are talking about. Even the mighty Jim Cramer is only 50% there!

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8 Comments
  1. Eternalsoul says

    Desh,
    As rightly pointed out by you, these analysts are not to be relied on at all. They just go with the flow in both the gloom and doom scenarios. I try to do the exact opposite of what they say and most often than not, that works!
    Eternalsoul

  2. Eternalsoul says

    Desh,
    As rightly pointed out by you, these analysts are not to be relied on at all. They just go with the flow in both the gloom and doom scenarios. I try to do the exact opposite of what they say and most often than not, that works!
    Eternalsoul

  3. Desh says

    EternalS, hahaha its the same with me… I make my own decisions on stock investing … and try not to go into MFs… until now it has helped! I have never made a loss in any year (on an annual basis) in the last 10 yrs of investing in the US.

  4. Desh says

    EternalS, hahaha its the same with me… I make my own decisions on stock investing … and try not to go into MFs… until now it has helped! I have never made a loss in any year (on an annual basis) in the last 10 yrs of investing in the US.

  5. paulus says

    I have now been making my living exclusively from stock trading, mainly in the UK, for the past nine years.

    I agree it is never a good idea to follow analysts blindly because they usually have an agenda. However, it is also a bad idea to try to second guess the market on the basis of logic for two reasons, 1) much smarter and better resourced researchers have got there long before you have 2) the market never looks at what is happening now, it always looking at what is going to happen next.

    So for me the three winning strategies have been 1) to look for shares that are objectively good value (cheap) and where the market has started to recognise the opportunity (it is pointless being the only person in the know) 2) watch where the market is going and jump on board just as soon as you dare 3) walk away as soon as you start to feel nervous (more than half of what I have made is down to having cashed in my profits before the s hits the f. The only year when I underperformed the market was when I missed the signal and held shares when the crunch came).

    Good luck to all you stock pickers out there.

    http://thinkhard.org

  6. paulus says

    I have now been making my living exclusively from stock trading, mainly in the UK, for the past nine years.

    I agree it is never a good idea to follow analysts blindly because they usually have an agenda. However, it is also a bad idea to try to second guess the market on the basis of logic for two reasons, 1) much smarter and better resourced researchers have got there long before you have 2) the market never looks at what is happening now, it always looking at what is going to happen next.

    So for me the three winning strategies have been 1) to look for shares that are objectively good value (cheap) and where the market has started to recognise the opportunity (it is pointless being the only person in the know) 2) watch where the market is going and jump on board just as soon as you dare 3) walk away as soon as you start to feel nervous (more than half of what I have made is down to having cashed in my profits before the s hits the f. The only year when I underperformed the market was when I missed the signal and held shares when the crunch came).

    Good luck to all you stock pickers out there.

    http://thinkhard.org

  7. Desh says

    Paulus, I agree with you. I also use the magazines and analysts to look into some stocks that may have missed me.. but 80-90% are useless tips. I buy stocks with the intention of keeping them for at least 2-3 yrs and longer.

    For selling, my philosophy is – anything that goes 20% below my cost price is to be sold. Only once I violated my principle and got burnt!

  8. Desh says

    Paulus, I agree with you. I also use the magazines and analysts to look into some stocks that may have missed me.. but 80-90% are useless tips. I buy stocks with the intention of keeping them for at least 2-3 yrs and longer.

    For selling, my philosophy is – anything that goes 20% below my cost price is to be sold. Only once I violated my principle and got burnt!

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