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Clowngrades: Welcome to Wall Street’s Three-Ring Circus

Clowngrades: Welcome to Wall Street’s Three-Ring Circus

Wild mood swings, spontaneous applause, and a rotating cast of characters who swear their raw talent surpasses the others – are these hallmarks of a middle schoolers in a talent show or Wall Street analysts reporting about financial markets? Hard to know the difference sometimes.

A recent headline got me freshly fired up about this topic. It described how Microsoft was downgraded and Snap was upgraded by analysts.

Wondering what happened next? The same day the article came out, Snap promptly dropped more than 13% and hit a new multi-year low. You read that right.

In our view, it’s another example of how all of these are synonyms: upgrade, downgrade, and clowngrade.

 

Clowngrades: Welcome to Wall Street’s Three-Ring Circus

Author: Mike Carlone
Category: Systematic Investing
Clown in front of graffiti wall

Clowngrades: Welcome to Wall Street’s Three-Ring Circus

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