Nearly every single day, countless Wall Street firms crank out analyst reports in which they issue Buy ratings on stock after stock. According to a new opinion piece penned by former Credit Suisse Group AG (ADR) CS 2.02% analyst Dan Davies, retail investors should be extra leery of buying stocks based strictly on analyst recommendations.

Factors At Play

In an ideal world, stock analysts would be objective observers and provide unbiased opinions and purely rational projections of where a stock is headed. Unfortunately, in reality, Davies confesses that there are a lot of outside pressures on analysts to give that all-important Buy recommendation.

‘Buy’-ing Their Way Up The Ladder

In his piece, Davies explained…

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