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Only 5% of Wall Street Recommendations Are SELLS

Posted on May 16, 2008

Here's a fascinating data point: Only 5% of the fundamental research of the brokerage firms is a sell. That's up from 2% in the 1990s. Despite having paid $1.4 billion to settle the analyst/banking scandals of the 1990s and early 2000s, Wall Street is still disproportionately afraid of the word Sell. That's rather low, when you consider how many stocks underperform theirrespective indices each year. There's a small sign of a potential change in this attitude: Merrill Lynch: Starting in June, Merrill will require that its analysts assign underperform ratings to 1 out of every 5 stocks ...

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