Stock Price Forecast Accuracy and Recommendation Profitability of Financial Magazines

Victor Tiberius and Laura Lisiecki
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Victor Tiberius: Faculty of Economics and Social Sciences, University of Potsdam, 14482 Potsdam, Germany
Laura Lisiecki: Faculty of Economics and Social Sciences, University of Potsdam, 14482 Potsdam, Germany

IJFS, 2019, vol. 7, issue 4, 1-8

Abstract: 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.

Keywords: buy recommendations; financial magazines; forecast accuracy; MSCI World; recommendation profitability (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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