Turn on
financial television or pick up a financially related magazine or newspaper and
you will hear, or read, about what an analyst from some major Wall Street
brokerage has to say about the markets or a particular company. For the average person,
and for most financial advisors, this information as taken as “fact” and
is used as a basis for portfolio investment decisions.
But why
wouldn’t you?
After
all, Carl Gugasian of
Dewey, Cheatham & Howe just rated Bianchi Corp. a “Strong Buy.” That
rating is surely something that you can “take to the bank”, right?
Maybe
not.
For
many years, I have been counseling individuals to disregard mainstream
analysts, Wall Street recommendations, and even MorningStar
ratings, due to the inherent conflict of interest between the firms
and their particular clientèle. Here is the point:
o
YOU, are NOT Wall Street’s
client.
o
YOU are the CONSUMER of the
products sold FOR Wall Street’s clients.
