Tuesday, December 11, 2007

The Analyst Racket

With today's developments in WAMU and a few other financials, there is a very timely and eye-opening interview with Wall Street insider Stephen McClellan in the January 2008 issue of ACTIVE TRADER on what analysts' recommendations really mean. Just in case you thought you understood the ratings game, McClellan pulls back the veil and offers some unexpected suggestions on how to game the ratings yourself. Hint: it's not daytrading. I wish the interview had been a lot longer, but it's provides enough tease to get you interested in buying McClellan's new book - FULL OF BULL. (that's the name of the book, not a comment). Nevertheless. after reading the article you probably will have a greater respect for the power of ratings changes.

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