In 2009, about one quarter of research departments in the securities industry announced they were dropping coverage of small=cap stocks, while about one sixth of them no longer covered the mid-cap stocks. A large percentage of large cap stocks are no longer reviewed because less analysts are employed.
This backs up my consistent contention that it does not pay for an investor to even attempt to evaluate securities in which to invest. Whether they are analyzed by Wall Street or not.
When you are on the outside looking in, it is extremely difficult to know what is going on in any business. Insiders in a corporation cannot know how outside events will affect their business either.
So why should investors bother to buy individual securities after a so-called analysis?
Their best bet is to buy baskets of securities, matched to indexes.
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