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I own two individual stocks, both utilities. One I follow closely.
Over the last year it reached $94.00 but today it is $77.00
Some analysts predicted $101, others in the 80s and 90s. At any point you could find upbeat predictions and more depressing ones.
Buy, hold, sell they said, all at the same time, all after looking at the same data.
All the company reports and forecasts are positive. Earnings are good, it all looks good…but
suddenly we are told the stock is overvalued and it has tumbled mightily as a result. Where were these “overvalued” guys when they were predicting targets in the $90s and above only a couple of months ago?
I know there isn’t much science here, but how do analysts look at the same data and draw greatly varied conclusions? How can one advise buy and another sell?
I see a parallel with meteorology. Doing your job doesn’t require much accuracy and when you’re wrong other people get soaked.
How can the average investor cope with this? My guess is they can’t and shouldn’t – that’s why we have mutual funds and ETFs – and that’s why I hold only two stocks.🤑
I see a parallel with meteorology. Doing your job doesn’t require much accuracy and when you’re wrong other people get soaked.
I’m going to assume this is an attempt at humor. I’d hate to think a respected HD contributor was intentionally spreading nonsense and misinformation on social media.
You answered your own question Dick, but you missed a word, “broad-based”, ie broad-based mutual funds and ETFs.
I actually trust the weather guys more. Even if all the financial gurus were in total agreement, sometimes bad things happen to good companies. Think Bristol Myers Squibb around 2000, or most recently Bud Light. If I’m feeling frisky I might go with an active mutual fund.