Why you shouldn't trust Wall Street 'Buy' ratings 📉

96% of stocks that Wall Street covers get a buy or a hold rating. Makes no sense. You should own 96% of all stocks. This sort of sounds more like a used car lot. 96% of these cars are good to buy. That's because Wall Street analysts' paychecks depend on you buying stocks. That's how they make their money. They don't make their money giving out good advice. They make their money suckering you in to buy stocks so that the bankers can make money. So while Wall Street wants you to buy or hold 96% of stocks and new constructs, less than 13% get an attractive rating. Better, only about 3.5% of the stocks we cover get our best rating of very attractive. By the way, that number is very close to the percentage of stocks that have created all the value in the stock market since 1927. No coincidence there. Meanwhile, according to more recent data, 50% of Wall Street ratings are listed as buy compared to our 13%. There you go. So I've said this before and I'll continue to say it. Trusting Wall Street is like trusting tobacco companies saying that cigarettes are not harmful or addictive.