Wall Street Crooks Busted
The fool knows better. Let me quoted it:
[In fact, 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 has been telling you to sell have risen 19% per annum on average. Meanwhile, the "buys" and "holds" have risen just 7%.
So is Wall Street just stupid? No. On the contrary, the analysts working on the Street are pretty bright guys -- but that doesn't necessarily work to your advantage.
You see, just because a sell-side analyst believes a stock is a dud, that doesn't necessarily mean he's going to clue you in to this fact. Think back to that 2002 TV ad from Charles Schwab, where the pinstriped broker tells his analyst: "Let's put some lipstick on this pig!" That's how the game was played pre-millennium. Analysts might have had private reservations -- heck, they might have had a private case of the giggles -- about the prospects for a stock. But that certainly didn't mean they were going to rate it a "sell."
Remember, these people have commissions to earn. And they don't make commissions by telling people who don't own a stock that they shouldn't own it. They make commissions by telling people who don't own a stock that they need to buy it right now.
And of course, if their private belief that the company is doomed turns out to be right, there's plenty of time down the road to make a second commission by opining that the circumstances have now changed, and it's time to sell that stock they told you to buy three months ago.]
Joe Osha, UBS and the gang rated INTC "buy,buy,buy" with target prices as high as $37, and INTC keeps going down, as institutions perform heavy dumping of the stock.
Joe Osha and the gang keeps downgrading AMD, and the stock keeps going up.
The other stock the Wall Street keeps pumping is DELL. But, folks, mark my word, DELL is the next Enron. A screw driver company with 80 billion market cap crashing onto $5 billion assets sooner or later will shock a lot of folks yet again.
But the fool has explicitly warned you, those Wall Street analysts are basically crooks who will steal your money.