Have you ever found it curious that Wall Street analysts almost never recommend selling any stocks? It seems like even the stocks that analysts are lukewarm on get a “hold” rating most of the time. So why is this the case? Tom and Brendan discuss that in this video from Mullooly Asset Management. They begin by discussing a recent article titled, “Why Wall Street Couldn’t Say Sell on Blackberry“. The article contains some interesting numbers that Tom and Brendan dissect a little bit to reveal some alarming statistics. You need to hear these numbers if you’ve ever trusted a Wall Street analyst’s recommendations before.
The truth of the matter is that Wall Street Analysts almost never recommend selling stocks because they get paid to write buy recommendations. Many big Wall Street firms would never write a sell recommendation about a stock because they fear they’ll lose investment banking revenue if they do. That’s why so many stocks receive “hold” ratings when they should really be receiving “sell” ratings.
Make sure you watch the video so you don’t miss any of this information!
