Bloomberg Markets Magazine just came out with their ranking of the ‘Worlds Best Financial Stock Pickers.” As quoted from the magazine:
“It’s been a rough three years for banks, securities firms and insurers—even rougher for the analysts whose job it is to predict how the stocks of these firms will perform. Starting in the second half of 2007, the financial system unraveled. First, the market for securities backed by subprime mortgages collapsed. By the second half of 2008, stock markets around the world were in free fall. Then, starting in March 2009, stocks roared back in the most powerful rally since the 1930s.”
“I don’t even remember when things were normal,” says Daniel Harris, a financial services analyst at Goldman Sachs Group Inc. “Every analyst that has been around in financial services during this time has a newfound respect for the depth that stock prices can go to.”
“It’s a very difficult climate to make stock recommendations in,” says S.P Kothari, a professor of management and deputy dean at MIT’S Sloan School of Management. “First you had to predict the downfall of the financial sector in 2008, which only very few people did. Then, you had to change your outlook to catch the recovery – all within a relatively short period of time.”
A difficult feat to say the least. According to Bloomberg Markets Magazine these are the top firms with the top stock pickers. No surprise at #1 – Goldman Sachs.
1. Goldman Sachs (GS)
2. KBW Inc. (KBW)
3. Deutsche Bank AG (DB)
4. Credit Suisse Group (CS)
5. Citigroup, Inc. (C)
6. JP Morgan Chase (JPM)
7. Barclays PLC (BCS)
8. Sanford C. Bernstein
10. Sandler O’Neill and Partners
To identify the best financial industry analysts, Bberg says it examined stock recommendations issued by more than 2,500 researchers at 77 firms from Jan. 1, 2008, through July 30, 2010.