New Rules, So Much Like The Old Rules
from the not-much-help dept
Here's an article from Forbes looking at the new SEC proposed rule changes to keep equity analysts from recommending crap stocks again. As most people have mentioned, these rule changes seem really weak and unlikely to do anything. The Forbes article points out that most of them simply repeat rules that are already in place. Analysts aren't allowed to sell stocks they've just recommended. That's not new. Analysts can't trade good research reports for banking business. That's not new. The SEC has been losing more and more credibility over the years. The article recommends one simple rule that seems to make a lot of sense: no analyst should be able to put out research on a firm their company has business with. Simple, yet effective.
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The Answer: Stop Listening To Them!
Most people already know better than to listen to someone cold-calling you from a no-name boiler room in Florida touting some thinly-traded penny stock. IMHO, the Wall Street analysts have cried "Strong Buy" once too often, and I now pay them the same heed. I'm counting on mutual fund managers to have the same healthy skepticism.
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Ignore them but it's still a problem
steve
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