The Analysts Are Wrong
from the what-do-they-know? dept
Red Herring has an article explaining why most sell-side analysts are way too optimistic. Most of their models for determing proper P/E ratios and such don't take into account the fact that the economy isn't growing as fast as it was over the past five years. The article paints an interesting picture of the way sell-side analysts work in determing how a stock should be valued. If you always thought it was pure guess work with a little hocus pocus thrown in, you wouldn't be that far off.
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GO TECHDIRT !!! i LOVE techdirt,,,please dont EVER shut it down.,,,,i love it (im serious) its the only news site i visit anymore.
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Good to see you actually read the article before opening your mouth. The article says nothing about bias. It just talks about how they determine valuations, and why the method doesn't work right now.
It is a good point if you had said "they never worked" because they were just as idiotically wrong back when the economy was good as well. It is still an interesting article, though, in that it seems to point out in good times or bad, analysts never seem to stop to get the big picture.
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