To quote an article in Investment News “Following the advice of equity analysts may be perilous to your profits”.
According to a Bloomberg study, stocks of companies that analysts liked the most rose 73% on average since the market recovery began in March 2009. That seems great until you find out that the companies with the fewest “buy” recommendations gained 165%.
Too many so-called “advisors” focus on trying to time or predict markets or providing “market commentary” or “economic commentary”. As we have always said, the markets are unpredictable. This shows that accurate predictions are hard to come by.
Investments are subject to risk, including the loss of principal. Because investment return and principal value fluctuate, shares may be worth more or less than their original value. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results. Talk to your financial advisor before making any investing decisions