Hopefully you didn’t do what Wall Street told you last March.
If you did act on what major analysts recommended, you missed the stock market’s biggest rally in decades. Not only would a $10,000 investment be wiped out, you’d owe $6,000.
Bloomberg: Citigroup Inc., Bank of America Corp. and more than a dozen other firms told clients to purchase European energy producers and U.S. drugmakers while selling banks and retailers, according to combined rankings compiled by Bloomberg. An investor who used $10,000 to buy companies in the highest-rated industries and bet on declines in the lowest since the advance began on March 9 lost everything and would owe as much as $6,000 to cover bearish trades, the data show.
The recommendations didn’t work because companies with the worst earnings led the 46 per cent gain in the Standard & Poor’s 500 Index since it fell to a 12-year low five months ago. Securities firms that failed to foresee that the hardest-hit stocks last year would recover fastest steered investors to drug and energy producers, which have trailed the MSCI World Index by more than 24 percentage points, the data show. Read the whole thing here >
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