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Stock performance newsletters usually result in people buying, selling, or trading their stocks based on what they read in the newsletter.

On an overall basis, stock performance newsletters under perform major stock induces. This is based on long term studies by the Federal Reserve Bank of New York.

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Q: What has been the results of stock performance newsletters?
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When will economy get better?

The market has been adversely affected by the ongoing economic crisis. The country's worldwide esp the United States are taking strong measures to revive the economy and the results are starting to show. For example the Indian stock markets (BSE for example) have been on an upward trend over the past few weeks. Slowly the results of the reform measures taken would start showing and correspondingly the stock markets would recover and come up.


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Related questions

What has been the major results of studying the performance of investment newsletters?

Long term studies on the performance of investment newsletters have shown that it is exceedingly difficult over the long term to consistently outperform a broad based market index such as the Standard & Poor's 500. In addition, comparing the returns of investment newsletters to the overall market is a complex task since many investment newsletters are not fully invested in stocks 100 per cent of the time. As a result, the returns of investment newsletters have to be expressed as "risk adjusted returns" (depending upon how much of an investment newsletter portfolio is allocated to cash) which clouds the comparison to a portfolio always 100 per cent invested in stocks. Theoretically a portfolio not fully invested in stocks should have less volatility and therefore less risk but not being fully invested during a bull market results in the risk that an investor will under perform the market. Studies by the Hulbert Financial Digest, which has been monitoring investment newsletters for two decades shows that some stock advisors have great track records but very few can consistently outperform the overall returns of the stock market. The best investment strategy for most investors would be to take the advice of Warren Buffett and invest in a low cost S&P 500 index fund such as the one run by Vanguard Group.


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The New York Times Stock has had, like many other stocks, variable performance. At times, the stock has performed well. Yet, during times of economic recession or pressure, the stock has been known to flounder.


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