Irrational exuberance, indeed

June 23, 2010 in Data,Finance

Here's an amusing chart showing the percent of stocks that sell-side analysts have rated "sells", on average:

There's a million junk-chart bloggers who will tell you how much is wrong with this graph (myself included) - starting with the left hand scale, which should go up to 10% rather than 100%. But in a rare twist, the left hand scale is the graph. The message here is that "sells" are a minuscule component of the whole universe, and that the SarbOx legislation did little to affect that proportion. The tall left hand scale and bold "Enactment" line highlight the incongruity of the rest of the graph.

(via Paul Kedrosky)

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