Thursday, November 13, 2008

Stock Ratings

Is there anything more ridiculous than brokerage stock "ratings"?  One example of how worthless these ratings are can be found in todays GM news.  JPMorgan just now decided that GM is deserving of a downgrade.  But even given the stock's 65-year lows and the very real chance the company could go under any day now, the geniuses give it a rating of "neutral".  Not a "sell" or "shitty" rating, but a "neutral".  What does it take to get a bad rating?  It doesn't seem to have anything to do with the stock itself.

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