Should you buy a stock on the basis of a brokerage house’s recommendation? If the stock is in a stage 4 downtrend, definitely not. Big brokerage houses love to recommend stocks that are down in price. Often these upgrades are based on valuation and completely ignore the fact that the stock price suffered a major price break. Often, stocks that are upgraded on the basis of valuation after a large price decline turn out to be good short candidates. Learn to do your own analysis and base your purchases on sound criteria, not because someone else says a broken stock is a good value.
