Analysts presently believe we are in a bullish trend. Six months later and a 30% increase in value-I am finally glad to know that. Now I can invest my money! All kidding aside, analysts have developed a bullish outlook over the last month providing more upgrades than downgrades.
Their move from a bearish to a bullish outlook is often associated with the general emotional transition from (fear to greed).
So what does this mean? Are the markets going to continue up because the analysts are on board? Or is it time to get defensive because analysts are bullish?
First of all, in defense of analysts, they have a very challenging job! A few years back, the Security and Exchange Commission passed a law that essentially took away any edge they might have in forecasting. Companies were now required to release information to the general public. It makes sense now that companies would be more cautious with what they release just because it will have such an influence upon the stock. Read more.....