Nov 22, 2007 08:30 PM
4186 Views
Have you met an analyst or heard him/her speak in your favourite TV channel lately? Sure you would have and also would have bought quite some stocks as they were termed "multi bagger" by your analyst/broker. Just when no one knew why the markets were going up flying, I did not see even one analyst/broker say that I do not understand this, there is no fundamental change in the company nor is this explainable with a technical chart and so do not put in your money, especially in margin or futures/options where you can lose more than what you have in your hands.
Every analyst said and continues to say this is a very strong market, there is so much momentum, we are "de-coupled" from the rest of the world and we will do well irrespective of what happens around the world and go ahead and invest your money and milk the market rather than staying in cash. While this was the advice and everyone put in our hard earned money, the market would crash as it did yesterday and today(Nov 21 and Nov 22, 2007) and these guys would be back again saying that they are not surprised at all, there was a lot of froth in the market and it is very nice to see a correction, there was too much complacence and the market is shaking the weaker hands off! These guys always speak after the fact.
So what happened to their technical and fundamental analysis and more importantly sanity which should have told them that this kind of run-away market is not possible and does not make sense. Technical and fundamental analysis might have worked when there is no euphoria or everyone in the market are investing and making money with reasonable targets. Due to the advice of these guys we have now invested our hard earned money at very high levels and I am sure we will all hold these stocks and wait for ever for these to get back to these high levels. Analysts and brokers have made their money and have you seen their disclosures - they will recommend a strong buy but they will not be having any positions in any of these stocks!
To add to all this crap, there is an ad now a days in TV, where the stock broker gets into everything, including advice on personal decisions such as marriage or quitting a job! Have you met a trust worthy analyst/broker who makes sense and provides good advice? I have not and I am waiting to meet one. This wait will be very similar and may be even longer than the wait for my "multi bagger" stocks to come out of red!
