Analysts Caught on the Wrong Foot Again!
While self-serving analysts have been busy predicting economic doom for the world, the markets everywhere have been experiencing a bull run hitting an all-time high yesterday.
They are drowning their post-Brexit sorrows with more dire projections, unable to digest how wrong they have been with their analysis yet again!
Goldman Sachs, for instance, says neither stocks nor bonds look good now. It does not require such market watchers to come up with that silly notion – of course they will look expensive when Dow and SP 500 are at new highs?
Hidden Agenda: But, after the Dow hit a record high yesterday, one strategist woke up to say it would hit 20,000 by the end of the year.
And some, like Jim Cramer, had to acknowledge that Brexit was in fact good for the markets, and not a catastrophe. Coming up with an assessment after the markets hit a crescendo is no thought leadership!
I will trust neither the optimist nor the pessimist as, to me, they all have some hidden agenda.
Art of Survival: Goldman Sachs appears to have perfected the art of survival despite being embroiled in scandal after scandal during the last several years, including involvement in Malaysia’s recent 1MDB scam.
This report, though, is not about Goldman Sachs. No business or individual in the business of market-watching is above board as all of them have an axe to grind and play with retail investors’ hard-earned money.
Sagacious investors have learnt to ignore their diagnoses but those who gave credence to analysts’ fear-mongering must be ruing their failure to cash in on the market surge.
Let me repeat one more time that analysts are a blood-sucking breed the world can be without!
G Joslin Vethakumar