Broker Check

Too many people on the left side of the boat ….

August 28, 2023

Be aware that the sell side strategists you see in the media don’t manage money like the buy siders; the sell sider’s main role is to increase trading and investment banking revenues for their respective brokerage firms and not to help you invest for retirement.  They do so by instilling fear and greed to influence those unaware, to sell and buy at the wrong times.  You need to know this so as not to be manipulated out of a good retirement by selling and buying at the wrong times.  

Too many sell side strategists were too negative on the stock market entering 2023 and were overly clustered to the left side of the boat (bearish), citing stagflation (recession and inflation).  A recession has not occurred, and inflation has trended down from 9% to 3%, driving the stock market higher this year.  These bearish sell siders are still negative but have raised their yearend 2023 price targets for the S&P 500!  The continued rise of the current bull market will be fueled by these bearish sell siders turning bullish and/or their firms replacing them with bullish strategists. 

The chart below shows the sell siders revising up in July their bearish S&P 500 yearend 2023 price targets they had in January.  As the US economy, corporate profits and inflation trends improve, the S&P 500 will continue to rise, which will force the sell siders to move to the middle of the boat (neutral) or right side of the boat (bullish) and again revising upward their S&P 500 target prices.