Do you think financial analysts have too much power and can they really move the market on a particular stock or industry? If so, provide examples.
I do not know if I would say this as an absolute. Don't they have rules by which they must abide? Regardless, I do believe they have the power to move the market on a particular stock on any given day. I just need some examples.
Analysts work in both the "sell-side" (e.g. for investment bankers) and the "buy-side" (e.g. mutual funds) of the industry. Though generally financial analysts do have to follow a "Code of Ethics," they certainly have a lot of power to move the market on a particular stock or industry. Some may say too much power; however, it is up to the individual consumer to decide. Basically, an educated consumer will know to not just go by the report ...
While Financial Analysts, just like other professionals, have a Code of Ethics to follow, they do have a lot of power in swaying a customer's financial decisions, especially in the arena of stock purchases and industry images. The way in which they use that power is often covert, as part of that process involves them performing what some may refer to as their "normal every day duties." Unknowingly to customers, often there is more below the surface than what analysts want you to think.