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The Accuracy of Investment Banks’ Predictions

As you may have noticed by checking out the Free Market Insights homepage, analysts at investment banks set target prices often, in fact, daily. Daily, we see new buy/sell/hold recommendations and target prices being set. Analysts leverage macro economic data, stock fundamentals, industry trends, and technical indicators to make their predictions. The question is, how often are their predictions accurate? And who can you trust? Here at FMI, we have the data that those analysts don’t want us to analyze. So lets begin. In our most recent data pull on 2019-03-23, we surveyed 500 different analyst target prices from before 06-01-2018. Of those predictions, 75.57% where bullish and 24.43% where bearish.

Of those predictions, 50.31% predicted the future stock price direction correctly. On average the actual stock return was -2.88% while the average expected return was 0.11%. However, looking at the predictions themselves, on average, the analysts missed their predictions by -13.61%. These …
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Selecting an Index Fund

An Index Fund is a portfolio of stock holdings that highly correlate with the index it is tracking. Learn about correlation here. Since an Index is a very stable grouping of stocks, it does not require much active management, and thus can be managed extremely cheaply. Investors are then able to earn dividends and realize market returns with an extremely low management fee. Most Index Funds do not directly charge investors with flat % of asset fees or fixed monthly fees. Instead, they sum all the assets and earnings for a year into one large pot, then take a percentage from that before dispursing the earnings back out to investors. This ‘fee’ is called the Expense Ratio. Since this ratio will be deducted from the fund’s annual returns, it is important to keep this in mind when comparing Index Funds.

Some very common Index Funds and respective Expense Ratios are: Ticker: SPY– SPDR S&P 500 – 0.0945% Ticker: VOO– Vanguard S&P500 – 0.04% Ticker: QQQ– Nasdaq 100 – 0.2% Ticker: EPI–…

The Problem with Absolute Stock Screeners

Stock screeners are the most useful stock analyzing tool offered by brokerages and investment companies. Stock screeners allow users to filter for stocks with given criteria, for example, only stocks with an earnings per share of $1 or larger. Researchers can filter across a variety of criteria to widdle down the massive stock universe to a list of shorter list of potential investment opportunities. Companies like VectorVest, Yahoo Finance and Finviz among many offer such services. These tools are often free, and rely on the user to understand stock fundamentals to determine criteria to create a filter that works. If you would like to learn how to build an optimized stock screener, you can go here to learn about the free market insights methodology.  As great as Stock Screeners can be, they are still far from perfect and have a couple major flaws. Absolute market values change over timeStocks maintaining a majority of your characteristics are excluded but may be best investment Lets t…

Fundamental Analysis and Identifying the Best Investment

Fundamental analysis is the process of analyzing a company’s value (often by interpreting the Financial Statements) to determine the underlying health and value of the company. Comparing the results of a fundamental analysis with its current stock price and other companies educates you on the quality of the investment opportunity. Fundamental Analysis generally employs qualitative and quantitative components.

Qualitative Qualitative analysis is the process of understanding the ‘soft’ attributes of a company. Examples include brand value, customer satisfaction, management team skill, customer loyalty, global presence, growth potential and potential product market value to name a few. Qualitative metrics are very difficult to define and compare with other companies. They are often scored with a Yes/No ( 1 or 0 ) score card to be able to compare across companies. However, due to the potential inherent bias here, qualitative analysis is usually left for the very end; to find the best stoc…

Impact Of U.S on Economy Of the Pakistan

Globalization is curse or blessing: Globalization is curse or sometimes the blessing for the economy of the Pakistan. The country selected for the justifying the above statement is (US) America.

Introduction Of American Economy:

The United States of America is a union of fifty states in North America. It is the world’s third largest economy in the world.(Amadeo, 2018). The U.S. economy is dominated by services oriented companies in areas such as technology, financial services, healthcare and retail.  Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP. Foreigners continue to invest in U.S. assets and companies, and so the net international investment position of the United States has grown over time. The U.S. is the 2nd leading exporter of goods and services in the world and the number one leading importer. The U.S. dollar is often referred to as the world’s currency because it is by far the most used currency in international transactions and also the most wide…

“Attitude & Behaviour of Consumer towards healthy food in Sialkot”

The purpose of the research is to analyse the behaviour & attitude of the consumer towards the hygienic or healthy food and to know the perception of the consumer that whether they prefer to healthy or just tastiest food by knowing the importance of the health and healthy food.           
    The purpose of research is to know about the selection of food which is based on taste or healthy ingredients used in its preparation or might be fresh fruits, vegetables and in form of this research is to aware consumers about that unhealthy food is how much harmful for healthy lifestyle and how shows a bad impact your daily healthy life and causes various harmful diseases and awareness about tat how it can be controlled and harmful for our society and the importance and effects of hygienic food on consumer’s behaviour. Research is also helpful for consumers to provide the methods or solutions to get rid of its harmful effects of unhygienic food.             

                    Purpose to …

‘’Consumer preference towards imported products over local products in Sialkot’’

The purpose of the research is to analyze the consumer’s perception, attitude and behavior towards buying the imported products over the local products. The purpose of the study is also to find out and analyze the reasons behind purchasing of consumer’s import products. The objective of the research is to expand the awareness of the consumers towards the local products, and to establish the factors that influence the public perception, preference and attitude towards the imported products instead of the local products.The purpose of the study is to analyze the reason of consumer of Sialkot’sswitching from local to imported products.

The purpose of the research is also to find out the reasons of the consumer’s switching from local to imported products. The purpose of the study is to analyze the perception of the consumer about Made in Pakistan’s label.This study investigate the consumer’s attitude towards the International brand. The research contained the information to measure the qua…