This line (subscription required) from today's Wall Street Journal pretty much tells you everything you need to know about how not useful Wall Street analysts are:Just a month ago, Goldman's commodity analysts predicted crude oil would average $148 a barrel next year. On Sept. 16, they trimmed that forecast to $123. On Monday, they slashed it to $86 a barrel.
That's right: analysts are being paid millions of dollars and receiving tax deductions on pinstripe suits to raise estimates as prices rise and then slash them when they fall. Such analysis is truly priceless -- almost as valuable as a solar-powered flashlight or a Wiimote-powered Roomba. And keep in mind that Goldman Sachs (NYSE: GS) is actually probably the best firm on Wall Street.
The point is this: most of the analysts you see on networks like CNBC are just expressing their mood on that particular day.
If you're in it for the long-term, the best thing you can do is nothing -- live within your means, invest regularly, and don't pay too much attention to the news.
One way to go broke is to buy oil when the analysts says it's going to $148 and then sell it after the downgrade.
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