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How much can we trust the city analysts?

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Apparently not very much! Research in 2018 showed that the recommendations of city analysts underperformed the stock market for the fourth year in a row.

The recommended stocks from investment banks which form part of the FTSE 100 were down 17% last year compared with the greater market, which lost only 12%. In comparison, our average portfolio, using our investment strategy, lost only approximately 5%!

The performance of the analysts’ choice of funds was so bad you would have been better off just putting the money into a savings account and letting it sit there! For example, at the beginning of 2018, the majority of analysts recommended buying stocks in American Tobacco, the share price of which then proceeded to fall by over 50% throughout 2018.

This shows that advice on stocks by city analysts should be taken with a pinch of salt. The real value of advice lies not just in a recommendation, but in one that is supported by analysis and research and which is suitable for you.

Redwood Financial is one of the Souths leading Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of pension and financial wealth planning, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email info@redwoodfinancial.co.uk to book a FREE Initial Meeting with us to review your financial planning needs.

 

Jasmine Lambert Chartered Financial Planner
Jasmine Lambert

Jasmine is the Managing Director and a Chartered Senior Financial Planner at Redwood Financial. She helps clients manage and grow their wealth and protect their estate. Jasmine also provides expert advice in our FREE Redwood Webinars, where you can learn more about Wills, Trusts and Estate Planning.

Redwood Financial is one of the south’s leading Investments, Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning, Lasting Powers of Attorney, Probate, Pensions, Savings & Investments, we can advise on any situation.
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