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“Indeed, the big brokerage firms tend to avoid standing out from the crowd, downgrading a stock only after its problems have become obvious. In October 2001, fifteen of the seventeen analysts following Enron still had a “buy” or “strong buy” recommendation on the stock even though it had already lost 50 percent of its value in the midst of the company’s accounting scandal.” — Nate Silver
Indeed, the big brokerage firms tend to avoid standing out from the crowd, downgrading a stock only after its problems have become obvious. In October 2001, fifteen of the seventeen analysts following Enron still had a “buy” or “strong buy” recommendation on the stock even though it had already lost 50 percent of its value in the midst of the company’s accounting scandal.