Wall Street analysts want you to look past short-term noise. They want you to focus on the long-term. They want you to close your eyes and trust them.
This is the same industry that could not predict the housing crisis while standing inside a collapsing house. The same people who rated Lehman Brothers A+ the week before it died. The same analysts who changed their price targets on Silicon Valley Bank after it no longer had a price.
But sure. Ignore the noise. The noise being price action. The thing that actually determines whether you make or lose money.
These three stocks have strong growth potential in future years, they say. Future years. Not this year. Not next year. Future years. The kind of timeline that lets them be wrong for half a decade before anyone checks the tape.
You know what else has strong growth potential in future years? My nephew's lemonade stand. Vertically integrated supply chain. Recurring customer base. Zero debt. But I don't see CNBC running a segment on it.
The article does not name the three stocks. It just says analysts find them attractive. Analysts find a lot of things attractive. They found Pets.com attractive. They found Enron attractive. They found every SPAC in 2021 attractive.
Retail traders will read this headline and think they are getting actionable intelligence. They will open their Robinhood accounts. They will buy calls on companies they cannot name because the article is paywalled. They will lose money by Wednesday.
Then they will blame the market for being irrational. Not themselves for taking investment advice from people who get paid whether you win or lose.
Look beyond the short-term noise, they say, as if technical analysis is just static between commercial breaks. As if support and resistance are conspiracy theories. As if every hedge fund on Earth does not have a technical team running algorithms faster than these analysts can update their Excel sheets.
Strong growth potential means the stock is down forty percent and they are trying to average into a position without moving the bid.
Photo by Larry Nalzaro on Unsplash
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