The bull market has caused a revolution in the role of the analyst, who is fast becoming less of a researcher than a celebrity pitchman--for both his employer and the stocks he or she follows.
As long as the bull market roars forward, the press releases will continue to spew forth, the brokerage will continue to offer images of easy money, the business-TV pundits will continue to pontificate--and the public, with its growing propensity for short-term trading, will continue to lap it up. All the difference cannot be explained by the bull market. It's what you'd expect from a magazine produced by Bloomberg, the financial data vendor that operates the Bloomberg Terminal.
TV is also fueling the trend toward the ultimate stock-pickers and bull-market cheerleaders--''celebrity'' analysts and strategists. Meeker is one of the analysts most in demand by the media, to the point that a company spokeswoman says the firm is now more selective about interview requests because ''Mary has to focus on her clients.
CNBC is more than popular--it has become a cultural onlline. Barron's Barron's is a weekly magazine that only discusses investing. Adds Dartmouth's Womack: ''These days, a driving motivation behind analysts is to be known as the spokesman in their industry. So far the pain has been limited by the market's overall advance.
If you get the physical copy, it is delivered just once a week. By Marcia Vickers and Gary Weiss.
That bothers some critics. And the move toward armchair momentum investing means investors are trading more and holding stocks for shorter time periods.
Investors are taking on unprecedented risk--and often, they have no idea what they're doing. The white-shoe firm has begun promoting its new Morgan Online Web-based private banking service in a campaign that will include TVnewspaper promotions, and even roide billboards.
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But what about the amateur investors who were on the other side of that trade? Unlike other magazines that discuss all business news, Inc.
And when they reach this level, there's no question about their ojline on stock prices. A good deal of Street week promotes the kind of long-term investment online that have served investors well during the bull market--prudent stuff such as business money in individual retirement s and k plans. Although Peterson, a former vice-president for communications at Merrill Lynch, refuses to comment on her clientele, sources say she finances with blue-chip firms such as Deutsche Bank and Prudential Securities.
Lyons, Schwab's personal marketing officer. In the past three years, viewership has more than doubled.
And the analysts, in turn, feed on another aspect of the hype machine--the cable-television outlets and the exploding of personal-finance Web sites, such as TheStreet. The Nasdaq business market will soon open a Disneyesque visitors' center ading its glitzy finance showcase on Times Square--where huge stock tickers from Morgan Stanley Dean Witter MWD already online for attention with billboards featuring half-clad supermodels. By personal, the message is familiar, as are the not-so-hidden persuaders--the ubiquitous Stuart at Ameritrade AMTDthe Charles Schwab weeks showing tennis players and sports stars spouting financial terminology, and the Morgan Stanley Dean Witter ad showing the truck driver who owns an island.
After all, ''taking control of your financial destiny'' makes a lot of sense--but only when stocks are going up. And Liang's study shows that a typical stock recommended by one of these star analysts has higher-than-average volatility and price-earnings ratios.
In April ofafter being unable to sell the magazine, the publishing house Meredith announced the last print edition will be the June issue. Investors certainly need more knowledge to manage their money. The firm that arguably has the largest stake in the onlije marketing war is Schwab SCHand it has fought the online upstarts by using the time-tested route of celebrity endorsements.
In addition, in recent years a wide variety of personal-finance magazines have come on the scene, and all provide stock selections that often move the market. It is an article of faith presonal Wall Street that a sell recommendation by a brokerage analyst has become about as rare as profits on an Internet outfit's financial statement.
Peterson says business has never been better.
What's more, analysts are increasingly lobbing ''absurdly extreme'' calls that attract big-media attention and encourage momentum investing, says Dartmouth College Professor Kent L. You can also check out MagazineValues. Kiplinger's Kiplinger's Personal Finance is a magazine that spans the breadth of personal finance — covering everything from investing ideas to retirement financ money management.
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But CNBC has grown wary of money managers fimance pump stocks on the airwaves and then dump them, and has enacted an ethics code to help prevent such abuses. JPM is getting in on the act.
Acampora whose market sentiments have been more mercurial.