Instead of trying to make all these laws to cure human failings, the incentives are clearly aligned for the analysts: to shill their bag. Always has been. If an investor hasn't figured that out yet, their agents will in time. Regulations should be focused on the ability to receive market data as quickly as anyone else (level playing field).
Nonsense to think that a year ago analysts weren't shilling their bag, as they were 5 years ago and so on, one must not assume an analyst's bag is only their portfolio though.
We like to believe that markets optimize and find the right price, but they are run by humans who have these tendencies like flattery as you mention which makes it hard for them to call out a bad company when they’d rather make friends
With the advances in technology and information, every analyst, same as every company, politician and KOL (influencers) should release their investments and holdings, in a public way.
A mere “full disclosure I invest in X” sometimes isn’t enough.
A standard way to share your portfolio holdings (doesn’t require all the details) most be enforced by consumers. We should get to a point where not doing so should be frowned upon.
What is also a huge incentive is getting named as the employees stock option broker. The firm will do a cashless exercise keeping the spread, then put on a full court press to get the employee into the firm's wealth mgmt arm with the resulting fees. You sure aren't going to sign up an employee with anegative outlook on his holding. If the Dem's ever take the presidency, look out.
This piece, and the other content that Ed has produced regarding SpaceX, is excellent. One more reason for most retail investors (me included) to stick with index funds and sensible asset allocation strategies.
Ah yes, index funds are confounding the market as well. Also you may need to doublecheck because there just might be some spcx in your index now too ✌️
Instead of trying to make all these laws to cure human failings, the incentives are clearly aligned for the analysts: to shill their bag. Always has been. If an investor hasn't figured that out yet, their agents will in time. Regulations should be focused on the ability to receive market data as quickly as anyone else (level playing field).
Nonsense to think that a year ago analysts weren't shilling their bag, as they were 5 years ago and so on, one must not assume an analyst's bag is only their portfolio though.
We like to believe that markets optimize and find the right price, but they are run by humans who have these tendencies like flattery as you mention which makes it hard for them to call out a bad company when they’d rather make friends
With the advances in technology and information, every analyst, same as every company, politician and KOL (influencers) should release their investments and holdings, in a public way.
A mere “full disclosure I invest in X” sometimes isn’t enough.
A standard way to share your portfolio holdings (doesn’t require all the details) most be enforced by consumers. We should get to a point where not doing so should be frowned upon.
This issue is fixed bottom up, not top down
What is also a huge incentive is getting named as the employees stock option broker. The firm will do a cashless exercise keeping the spread, then put on a full court press to get the employee into the firm's wealth mgmt arm with the resulting fees. You sure aren't going to sign up an employee with anegative outlook on his holding. If the Dem's ever take the presidency, look out.
This piece, and the other content that Ed has produced regarding SpaceX, is excellent. One more reason for most retail investors (me included) to stick with index funds and sensible asset allocation strategies.
Ah yes, index funds are confounding the market as well. Also you may need to doublecheck because there just might be some spcx in your index now too ✌️