Stock Price Forecast Accuracy and Recommendation Profitability of Financial Magazines

Stock Price Forecast Accuracy and Recommendation Profitability of Financial Magazines

In this study, we analyze the forecast accuracy and profitability of buy recommendations published in five major German financial magazines for private households based on fundamental analysis. The results show a high average forecast accuracy but with a very high standard deviation, which indicates...

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Bibliographic Details
Main Authors: Victor Tiberius, Laura Lisiecki
Format: Article
Language:English
Published: MDPI AG 2019-10-01
Series:International Journal of Financial Studies
Subjects:
buy recommendations
financial magazines
forecast accuracy
msci world
recommendation profitability
Online Access:https://www.mdpi.com/2227-7072/7/4/58
Description
Summary:In this study, we analyze the forecast accuracy and profitability of buy recommendations published in five major German financial magazines for private households based on fundamental analysis. The results show a high average forecast accuracy but with a very high standard deviation, which indicates poor forecast accuracy with regard to individual stocks. The recommendation profitability slightly exceeds the performance of the MSCI World index. Considering the involved risk, which is represented by a high standard deviation, the excess returns appear to be insufficient.
ISSN:2227-7072

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