“So far this month, according to FactSet, 40 of the 47 analysts in that firm’s database revised their earnings estimate for the company downward. And not one has revised his estimate upward,” Hulbert writes. “It’s hard not to be cynical about Wall Street analysts. But it turns out we can become better investors by understanding their behavior patterns.”
“The key, then, is to begin buying Apple shares only when there has been an increase for a couple of months in a row in the number of analyst upward revisions,” Hulbert writes. “If the historical pattern holds, chances are good that subsequent analyst revisions will also be positive rather than negative—propelling the stock ever higher.”
Read more in the full article here.
MacDailyNews Take: So, when the sheep stampede, follow their lead?