At a time when many investors are taking a hard look at their portfolios, good information is more important than ever. Sadly, it is even harder to come by. There is no substitute for applying your own critical thinking skills to the opinions you see. A featured guest on CNBC, Senior Investment Analyst for a major firm, provided a test of that skill. (CNBC put the interview behind their paywall, but I record these programs to verify my analysis.
The guest had just issued a downgrade for the industrial sector.
His first reason was that the stocks were back to levels at the start of 2019. He questioned the 30% rally in the sector when earnings were only up 10%. He called the 20% difference a “ballistic move” in the stocks, pushing them to excessive valuations bordering onRead More »