Are The Best Stock Newsletters The Right Place For Advice?

By Jeanette Riggs


The chances are that most investors want to get their advice from the best stock newsletters as opposed to ones that are not top of the class. Whether someone is a serious investor or just browsing around looking for stock tips, there is a wealth of information out there so it might be a good idea to know where newsletters get their research from.

Some state that the key to stock research is finding a company that shares the same investing philosophy. The theory is that by finding a place that thinks the same way, the time and effort taken to make fiscal decisions is easier because client and investor are on the same page. There are a variety of sources, each with their own pros and cons, so it is up to the individual to decide what information to disseminate from each source.

In order to find like-minded people research needs to be done, information needs to be gathered. Wall Street has many analysts and this may be the best place to start. These analysts work for investment banks and are available to give advice on where to put cash and are able to sell shares to customers and tell them about the growth prospects of particular stocks. They usually work on a commission basis but this isn't always the case.

Another strand of research to look into is that of independent firms, which include companies offering access to reports, often involving some sort of subscription fee. Standard and Poor track over 1,600 stocks and it is these reports that often find their way to the independent firms and in turn to individuals interested in the market.

If the individual chooses to get their information from a newsletter, there are several things to consider before parting with a subscription fee. Check out how long they have been in business and look at their track record when it comes to investment advice. Lastly, be sure to check out their average returns over a prolonged period, say a decade. There are also newsletters that track the performance of their counterparts so checking this out might be something worth considering.

Some newsletters sell software that can analyse data, allowing the investor to track specific stocks and perform calculations that professional analysts make. This does not take the place of investment advice but does allow a degree of autonomy. It depends on the mentality of the investor, some might prefer to go it alone.

One of the widest sources of data can be found by searching online. The Internet can be a valuable tool for getting opinions on what others think a company will do in the future, and can be empowering enough to encourage a person to make up their own mind and go solo, without being told by a newsletter how to use their money. One thing to look for on the web are for those people that actually have put their own money put into shares.

The decision on whether to use the best stock newsletters for investment advice, free online sources, or a Wall Street analyst depends mainly on financial goals. They all fill niches within the market and none can guarantee a return, so the choice comes down to what the investor.




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