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 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.
| Author details: | Victor TiberiusORCiDGND, Laura Lisiecki |
|---|---|
| DOI: | https://doi.org/10.3390/ijfs7040058 |
| ISSN: | 2227-7072 |
| Title of parent work (English): | International Journal of Financial Studies |
| Publisher: | MDPI |
| Place of publishing: | Basel |
| Publication type: | Article |
| Language: | English |
| Date of first publication: | 2019/10/01 |
| Publication year: | 2019 |
| Release date: | 2019/12/17 |
| Tag: | MSCI World; buy recommendations; financial magazines; forecast accuracy; recommendation profitability |
| Issue: | 4 |
| Print run: | 7 |
| Number of pages: | 8 |
| Funding institution: | Universität Potsdam |
| Funding number: | PA 2019_102 |
| Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
| DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Peer review: | Referiert |
| Grantor: | Publikationsfonds der Universität Potsdam |
| Publishing method: | Open Access |
| License (German): |  CC-BY-NC - Namensnennung, nicht kommerziell 4.0 International |
| External remark: | Zweitveröffentlichung in der Schriftenreihe Postprints der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe ; 118 |
