In this week’s episode of State of the Market, Chief Income Strategist Marc Lichtenfeld takes viewers behind the scenes…
On Wall Street, two key groups run the show: the buy side and the sell side.
The buy side consists of groups that buy investments, including parties like hedge funds and mutual funds.
Analysts on the buy side don’t publish their findings…
But analysts on the sell side – composed of major financial institutions that sell investments – do share their research. And when they do, their results can influence stock prices.
That’s because sell side analysts issue buy and sell recommendations in order for their trading desks to earn commissions.
When retail investors follow these recommendations, the stocks move accordingly – and sometimes wrongly.
If a sell-side analyst has a conflict of interest or is just unwilling to tell difficult truths, their downgrades can be painful for small investors – and their upgrades can be dangerous.
But what if the small investor got to call the shots?
In this week’s episode, Marc explains why he doesn’t listen to analysts’ opinions of the stocks he holds – and why you shouldn’t either.
Trust your own thorough research when it comes time to buy or sell stock. Listen to experts like Marc who don’t share Wall Street analysts’ severe conflicts of interest.
Forging your own path is one way to take your power back in this wild market.