Want to make money with stocks? Never ever listen to analysts

(Bocconi University) Research by Nicola Gennaioli and colleagues shows that the best way to gain excess-returns on stock markets could be to invest in the shares least favored by analysts. They compute that, during the last thirty-five years, investing in the 10 percent of US stocks analysts were most optimistic about would have yielded on average 3 percent a year. Investing in the 10 percent of stocks analysts were most pessimistic about would have yielded a staggering 15 percent a year.