Horace Dediu, Analyst, Asymco
Right on Horace! Highly paid “sell-side analysts opinions should be avoided, because they are the hapless stooges of brokers, intent on screwing with their client’s minds. Oh, wait, that’s not quite what Horace said, but close enough for jazz.
Horace Dediu, in an interview with The Next Web, puts Apple analysts in three categories, broker analyst, industry pundits, and bloggers. He rates their ability to analyze inversely proportional to the amount of influence they have. So, in other words, an analysts that works for a brokerage, and has the ability to move Apple’s stock price unnaturally, causing billions of dollars to be shifted in the markets, because a bunch of Wall Street juggernauts are hanging off every word; they are the ones with the least chance of providing a credible prognostication.
Horace, you are right, but you failed to explain why their employer, the brokerage, does not place a high value on accuracy. Instead they value and highly prize an analyst that can stir up controversy and incite market volatility, because that moves stock price, and that makes the broker money.
I will say this, the part where Horace says bloggers, who have little to no influence on Wall Street, have the superior knowledge. Well, he is exactly right, it is a paradox.
So paradoxically, the opinion of those who are highly paid should be treated with suspicion while the opinion of those subject to peer review should be treated with respect.
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