The Finance Professionals’ Post details the long list of responsibilities of a Wall Street analyst: business analyst, technical expert in areas like computing or biotech, industry expert, judge of managerial talent, auditor, forecaster, modeler and valuation expert, and marketer of your ideas. Notably missing from the list of responsibilities:
You might spend some time understanding the particular supply and demand dynamics of the stock itself, although that is something that many fundamental analysts never attempt to do.
Oops, missing the supply and demand dynamics of the stock itself is a problem. The laundry list of responsibilities of a Wall Street analyst can all serve to strengthen the analysts’ conviction that his or her worldview is correct and the market is wrong. No wonder analysts so often dig in their heels and double down on losing bets.
HT: Abnormal Returns
