Every morning I receive an email from a South African financial institution that summarises the previous day’s news on the financial markets. I do not follow the financial markets closely, so I appreciate a quick summary of what had happened – and what the major news items for the day will be. Sometimes, when there is time, I would browse through the section on research investment ideas, where an analyst would discuss the fundamentals of a stock and its expected performance. But I’m often less interested in the stock itself – the consequence of a limited personal portfolio – and more interested in how accurate these analysts are in their advice. Are their forecasts actually correct more than 50% of the time?
Do financial analysts add value?
Do financial analysts add value?
Do financial analysts add value?
Every morning I receive an email from a South African financial institution that summarises the previous day’s news on the financial markets. I do not follow the financial markets closely, so I appreciate a quick summary of what had happened – and what the major news items for the day will be. Sometimes, when there is time, I would browse through the section on research investment ideas, where an analyst would discuss the fundamentals of a stock and its expected performance. But I’m often less interested in the stock itself – the consequence of a limited personal portfolio – and more interested in how accurate these analysts are in their advice. Are their forecasts actually correct more than 50% of the time?