Wall St. Bank Stock Recommendations

October 27th, 2009 by andum | Posted in Economy, Investing, Make Money, Stock Market, Wealth Creation, Wealth Preservation

The Wall Street Circle (Jerk) Of Trust
Are you thinking about investing in the major US banks? Zero Hedge put together the above graphic to show the cozy relationship between the major US banks.   Each of the green arrows shows one bank recommending the stock of another bank.   Most of the red arrows come from an analyst at a European bank.   Go to Zero Hedge to read the post and see the graphic in more detail.  What I want to know is how much of each of these bank’s assets include stock in the banks that they are recommending.  I also want to know if they were buyers or sellers after their recommendations came out.  Buying stock solely on the basis of a recommendation is a loser’s strategy.  You should have a basis for the investment (fundamental and/or technical) that you understand and a target price or plan to sell.  This is not a time to buy and hold. Stock downgrades typically come out too late and/or after the institutional stock owners have sold.

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