Listening to the wrong people in the finance world can be disastrous

We live in an opinionated society and let’s face it, it usually causes more harm than good. At some point in our lives we are inclined to make investments to get ahead in life without having to slave ourselves over and above the daily grind. In this day and age everybody is so busy with work and life’s obligations that the majority of the population is pressured to make decisions based on tips and opinions.

This becomes a huge problem.

Misinformation can lead to substantial losses.

Let’s take this Nomura Analyst for example. He’s a credible 5 star Wall Street “Analyst” and has been around the finance industry for many years. If you do a bit more due diligence, you’ll find that he was part of Lehman Brothers before they collapsed.

Romit Shah at Nomura Suggests NVDA is a $90 dollar stock

Here we will see how putting your trust in an “Analyst” is no different than going to the casino or picking a random stock to invest in.

March 2017 Romit Shah insists that NVDA is a $90 dollar stock and people should buy INTC

Nomura stands firmly behind their belief that NVDA is not a strong growth stock and notifies the public that they should unload and move onto INTC for a safer choice. However, it is unclear how INTC is a “safer” or less risky name… NVDA has been around for a very long time and has an excellent track record for innovation and creating value.

Nevertheless, their reasoning: Slowdown in gaming

It is also unclear how they came to this conclusion as they did not elaborate, provide factual information or explain these opinions further.

Now lets look at the performance of both NVDA and INTC over the past few months.

Graph of INTC since the Analyst opinion. The stock has plummeted since the buy recommendation.

In the article shown earlier, Nomura heavily and proudly stood by their downgrade and was clearly incorrect, as a matter of fact, their spokesperson gave advice that was the opposite of what transpired…

How is it possible this analyst has been in the industry for well over 10 years and is still moving the markets with poor information?

Graph of NVDA since the Analyst opinion. The stock has gone up almost 50% higher since the downgrade to $90 dollars.

There are people who trade and make money nearly every day in the markets, whether it be the crypto space or the stock market. A 95%+ track record is achievable. However, many Analysts, with a large following and the semblance of a great track record, fall woefully short.

Beware of who you trust with financial advice.

Rublix is aiming to curtail the distribution of misinformation with the Hedge platform