When investing in the stock market, there is no better commodity than independent thought, as following the lead of other investors or professionals who share their views publicly can often be a futile endeavor. However, there are times when a little backing from the hands of experience can be useful, so long as investors don’t blindly follow the advice.
This is especially true of Wall Street analysts, as they often tend to keep their ratings and valuations aligned with their interests of protecting their careers and reputations alike. With this in mind, whenever investors feel compelled to act on a recent analyst upgrade or valuation boost, a certain degree of due diligence must be performed in order to avoid these pitfalls.
