From our database of historical upgrades and downgrades, we went back and tracked the daily number of upgrades versus the daily number of downgrades since the start of 2002. Since January 2002, we found a whopping 32,140 downgrades and 27,528 upgrades -- indicating a slight lean toward the negative side by analysts. Below we highlight the 50-day moving average of the daily number of upgrades minus downgrades. Our hope was to see if any trends emerged in relation to equity markets (are more downgrades/upgrades bad/good for the market, etc.) but so far we have been hard pressed. What we did find is that analysts as a whole tend to be seasonal in their recommendations. Over the past few years, the number of upgrades have been more frequent during late Spring/early Summer, while the number of downgrades have been more frequent during late Fall/early Winter. Any theories? You can list them in the comments section below.
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