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Stock Price Forecast Accuracy and Recommendation Profitability of Financial Magazines

Author

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  • Victor Tiberius

    (Faculty of Economics and Social Sciences, University of Potsdam, 14482 Potsdam, Germany)

  • Laura Lisiecki

    (Faculty of Economics and Social Sciences, University of Potsdam, 14482 Potsdam, Germany)

Abstract

In this study, we analyze the forecast accuracy and profitability of buy recommendations published in five major German financial magazines for private households based on fundamental analysis. The results show a high average forecast accuracy but with a very high standard deviation, which indicates poor forecast accuracy with regard to individual stocks. The recommendation profitability slightly exceeds the performance of the MSCI World index. Considering the involved risk, which is represented by a high standard deviation, the excess returns appear to be insufficient.

Suggested Citation

  • Victor Tiberius & Laura Lisiecki, 2019. "Stock Price Forecast Accuracy and Recommendation Profitability of Financial Magazines," IJFS, MDPI, vol. 7(4), pages 1-8, October.
    • Handle: RePEc:gam:jijfss:v:7:y:2019:i:4:p:58-:d:272725
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    Cited by:

    1. Laura Studen & Victor Tiberius, 2020. "Social Media, Quo Vadis? Prospective Development and Implications," Future Internet, MDPI, vol. 12(9), pages 1-22, August.
    2. Joana Almeida & Raquel M. Gaspar, 2021. "Accuracy of European Stock Target Prices," JRFM, MDPI, vol. 14(9), pages 1-27, September.
    3. Tiberius, Victor & Gojowy, Robin & Dabić, Marina, 2022. "Forecasting the future of robo advisory: A three-stage Delphi study on economic, technological, and societal implications," Technological Forecasting and Social Change, Elsevier, vol. 182(C).

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