How Impactful Are Changes in Analyst Ratings?

Before you give into any temptation to follow analysts’ recommendations, consider this conclusion from three researchers: “On average, analysts’ revisions are not highly correlated with subsequent long-run returns, indicating that analysts do not provide new information that is relevant for the long run for typical investors.” The finding is from an appropriately named paper published…

 

AAII Stock Screens 2015 Review: Small-Cap Wins During a Large-Cap Year

This week’s AAII Weekly Features highlight these valuable AAII articles: AAII Stock Screens 2015 Review: Small-Cap Wins During a Large-Cap Year: In a year dominated by large-cap stocks, a small-cap approach broke through to lead the pack. Revised Guidance on Following the Model Shadow Stock Portfolio: Changes have been made to the average daily dollar volume requirement…