Wednesday, 3 July 2013

How The Best Stock Newsletters Get Their Research Information

By Jeanette Riggs


The chances are that most investors want to get their advice from the best stock newsletters as opposed to ones that are not top of the class. Whether someone is a serious investor or just browsing around looking for stock tips, there is a wealth of information out there so it might be a good idea to know where newsletters get their research from.

A number of options are open for the individual that wants information. Before rooting out information, the first thing to consider is an investment strategy and how much cash there is to put into shares. This may determine the strategy. After this it may be time to look for sources that share your vision of investing, as it should make the process of deciding where to put money that much easier.

Research from Wall Street is generally produced by investment banks and the banks are often dubbed "sell-side research" because they banks usually sell stocks to customers. They generally make their money by charging fees to customers for the privilege of trading. Their analysts provide profit forecasts for all manner of companies and the information they provide can be a useful indicator on how the markets view a company's business prospects.

Certain places, such as independent financial firms, specialize in providing growth forecasts for big companies while others track the data of hundreds of institutions around the world. These places usually have subscription based services and often cater for different types of financial strategies.

Newsletters can perform much the same function as any source of investment advice, they advise on which shares to buy and which to sell, giving detailed reasons. As with any financial advice, it may be wise to do some due diligence and check out the track record of the newsletter and investigate their average returns over a prolonged period.

When making the decision as to whether to take the newsletter route, there may be other considerations to take into account. Many offer a variety of services and some sell analysis software too. This gives a degree of flexibility over which companies annual reports to explore and dissect, as the investor may wish to follow a specific company that is not covered by the newsletter.

One of the widest sources of data can be found by searching online. The Internet can be a valuable tool for getting opinions on what others think a company will do in the future, and can be empowering enough to encourage a person to make up their own mind and go solo, without being told by a newsletter how to use their money. One thing to look for on the web are for those people that actually have put their own money put into shares.

The decision on whether to use the best stock newsletters for investment advice, free online sources, or a Wall Street analyst depends mainly on financial goals. They all fill niches within the market and none can guarantee a return, so the choice comes down to what the investor.




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