Stock Analysis

I have electronic mails from Morningstar. This company supplies statistics and analysis of just about every publicly traded stock company you can believe of as well as voluminous information on common finances around the world.

You can inquire them about a company's sales, management, marketing plan, their public presentation within a corporate sector, ratios of all kinds, etc, etc. The have got it. After you have got gleaned all these facts and analyzed them there is still one unreciprocated question. If I purchase this equity will it travel up? You definitely will not get that reply and that is the lone reply that agency anything. It is the underside line for all research.

Brokers and financial contrivers utilize this type of service to determine if a stock or monetary fund is a "good" buy. When it come ups right down to it you must ask, "If I can get this information then so can everyone else so why is it any good?" It isn't. After you have got been doing this a few old age you will happen that it is a useless exercise. Brokerage firms desire you to make it so that if the stock travels down they can state to you that it was your determination to purchase it based on all those "facts". Yes, you had all that information, but it is nil more than disinformation.

They state you that every conservative investor makes his homework, his research. The term conservative investor is an oxymoron, like military intelligence or honorable politician. There is no such as thing as a conservative investing if there is the slightest possibility that you could lose all or portion of your money. And that is true in just about everything whether it is stocks, bonds, existent estate, collectibles, you name it.

Their advertisement stated that every calendar month they would have got information on the best and most popular common funds. Since when have popularity got anything to make with a stock or a monetary fund going up? Fidelity Magellan is one of the most popular common finances in the human race yet it dropped from $145 to $73 (a 50% loss) and is now trading at $100 still down 31%. Janus Balanced Fund dropped from $25 to $17.50 and have since rallied to $20. TR Price Japanese Islands Fund hit a high of $16, drop to $5 and is now $8 still a 50% loss. Did any of their “information” ever state you to sell? Popularity is not a yardstick for profits.

And they also will give you the hot choices of 150 analysts. You might as well utilize a dart board as listen to those guys. They are high priced guessers who set you in and never get you out when something starts down. Morningstar is providing you with information. The information is not deserving the paper it is written on.

Their facts are useless even though they are facts. Bottom line: research is worthless.