The cat is out of the bag. CFOs admit that they manipulate accounting rules to “misrepresent earnings”. They also say that Wall Street analysts play along. This week we’re putting Wall Street analysts in the Danger Zone.
This report shows how well Large Cap Value ETFs and mutual fund managers pick stocks.
Investors are good at picking cheap funds. We want them to be better at picking funds with good stocks. Both are required to maximize success.
Utility sector ETFs and mutual funds are in the Danger Zone this week.
For the second quarter of 2014, only three sectors manage to even earn a Neutral rating. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each sector.
Asset write-downs are unusual charges that don’t appear on the income statement because they are bundled in other line items. Without careful footnotes research, investors would never know that these non-recurring items distort operating earnings by overstating core-operating costs.