The mainstream business press takes a beating from Gawker in a post that details all the mistakes they’ve made in the past year. For instance, BusinessWeek endorsed purchasing Lehman stock in April, while Forbes endorsed Merrill that same month. Whoops!
Hindsight is always going to be 20/20 and with all the news that these magazines churn out, we’d probably find a bunch of correct predictions, but what fun is that? Even the mea culpa’s from these guys turned out disastrously.
Gawker: In December, Fortune magazine admitted it had been remiss naming insurance giant AIG one of its “10 Stocks To Buy Now” before a yearlong 18 per cent decline. “We… didn’t expect [the] mortgage unit to be such an albatross,” editors wrote. To correct the error, the magazine had a fresh list of “The Best Stocks For 2008” — including Merrill Lynch. “Smart investors should buy this stock before everyone else comes to their senses,” Fortune wrote, calling a recent correction in Merrill stock “an overreaction.” Investors who followed this advice are now down 93 per cent. All the big financial magazines butter their bread with dubious prescriptions for how hobbyist investors can beat market professionals, so Fortune is hardly alone in being humiliated by the ongoing market meltdown. We’ll spread the embarrassment around after the jump.
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