Analysts At Their Least Bullish Levels Ever

While Wall Street analysts are typically known for being overly optimistic, based on at least one measure, they have never been less bullish. According to Bloomberg statistics that track analyst buy, sell, and hold ratings, only 36% of all ratings are currently buys.

As the chart below shows, this is the lowest level since at least 1997, and significantly lower than the 75% level we saw in 1997 and 2000. However, since the Spitzer crackdown on Wall Street research and the bursting of the tech bubble, analysts have grown increasingly shy about putting a buy rating on a stock they cover.

click to enlarge

Comments

[Steve in TN:]

The lower the estimates go, the closer we are to the bottom. All optimism has to be purged from the system in order for the market to have a sustainable rise.

2008 Nov 25 03:24 PM

[The Market ...:]

Go back 30-50 years and you might have something significant. Your sample isn't big enough. In this sense you need to sample a lot of bear and bull markets and/or recessions and booms to have something meaningful to say. Your period only covers 2 recessions(1 minor and the other just starting).

2008 Nov 26 09:28 AM