In a recent speech, he said that rosy stock analyses appear to be shaped by new ties that analysts have with the companies they follow. Let me try to explain this concept in laymen's terms. Say, company A wants to raise capital. It hires a brokerage firm's underwriting team to do this. But if that brokerage firm's analysts are on record with a sell order on the stock, company A will likely take its business elsewhere.
Journalists face the same problem.
But it seems that this problem is now facing Wall Street. I can't help but wonder what else is driving the number of buy signals to exceed sell signals by eight to one. This is a concern because if all of these buy signals are bogus, that's not good news for the stock market or you. Which leads me to my second piece of information. It has to do with a quote that appeared in the April 19 th issue of Forbes Magazine .