| Strictly Business Magazine A division of S&S Enterprises, a Floyd Snyder Production. Santa Maria, California. Feedback.welcomed |
| Analyst, Why Do They Keep Paying These People by Floyd Snyder Wow! The more things change the more they stay the same. I wrote this back in November of 2001 but it is still business as usual. Not that I thought my article would change anything but I did think that the events surrounding Enron, WorldCom and a few others would. While the economy itself has certainly change the analyst reactions to the release of data on employment, CPI, interest rates, production and others has not. Nov 2, 2001 - Santa Maria CA: - It never fails to amaze me just how many supposed experts continuously feign surprise on the release of certain data as if it was totally new to them. Take the unemployment data as an example. On November 2nd the data was released for October and the headlines read "US Jobless Rate Soars to 5.4% From 4.9%", and a major groan went up all over Wall Street. To the best of my knowledge, most of the tier one firms have highly paid analyst, economist, soothsayers and crystal ball readers that knock down some serious bucks to know what‘s going on. Not to mention their paid in advanced subscriptions to Miss Cleo’s Hotline. What are these people actually doing? They have been no better at predicting economic data then rating stocks. For the past two to three years I have been sitting in front of my computer screen monitoring business news that effects Wall Street, stocks specifically. Day after day I receive and review hundreds of company news releases, media stories and market commentary from every major news source and broker/analyst firm covering stocks. One after another release has dealt with cutbacks, lay-offs, down sizing, restructuring and every imaginable description of people being put out to pasture or just plain getting the boot! The implosion of the dot.bombs has only been part of story. Earnings have been far less then impressive even after many of them were trying to hit lowered estimates, some lowered two or three times. Meanwhile, the topic of recession has been debated and even the definition of what a recession is has been debated and the pundits all seemed to do what they do best, agreed to disagree. And the economic slowdown marched on. Only one person was speaking out on the matter going as far back as the "election from hell" and all through the recounts that had taken on a life of their own; Bill O’Reilly on the Fox network. One guest after another, all chosen form among the vast pool of Wall Street experts debated O’Reilly’s position, most of them disagreeing with him and tried to downplay the employment situation. Then came the 9/11 attacks; without a doubt one of the biggest "stop work" events in the history of this country. Right on top of that, the ever-worsening Anthrax scar. Now, I don’t get the big bucks like the above mentioned experts do, but it hardly takes a Nobel Prize winner to know that unemployment is on the rise and I’d bet Bill Seidman’s wages for one year against Larry Kudlow’s, that the December numbers will show just. No permission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and hot links included. We do request that we be informed of where it is posted so reciprocal links can be considered. Email floyd@sbmag.org. Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in the late1990's both as a trader and as the moderator of one of the Internet's largest real time trading rooms. He is the owner of http://www.TraderAide.com , Strictly Business Magazine at http://www.sbmag.org www.FrameHouseGallery.com and www.EducationResourcesNetwork.com |
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