Goldman: Hated it at $110, Love it at $200

Calyon Securities upgraded Goldman Sachs (GS) today from Underperform to Outperform.  As shown below, the stock had been rated underperform by the analyst for the last six months.  After a rally of nearly 90 points, the analyst now likes the stock enough to upgrade it not one, but two notches.  While you can't fault someone for changing their opinion when the facts change, it's tough to give this upgrade too much weight considering the analyst's prior track record on Goldman.

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Comments

[Little Picture]

Mike Mayo saved his clients fortunes during the credit crisis. Yes, he has been skeptical and wrong during the advance. But, to provide just a synopsis of his recommendations since the March lows misses the "Big Picture." I recall multiple bearish posts on this website in the first quarter suggesting significant downside due to President Obama's harsh policies that would hurt Wall Street and the markets. I recall you hated the market at 700 due to Obama's policies (and downside momentum) and now you love it at 1060 (GS and AAPL are rushing to 200!!!) So, give us a break. Everyone in this business makes bad calls. Even the Big Picture.

[Bespoke]

Little Picture,

We moved our Model Portfolio from 75% cash to being nearly fully invested in equities on March 2nd, and have kept our cash levels under 25% or so since then. Not sure if you're a Premium subscriber, but that is where we make our market calls. On this site we typically just post on what is happening in the market and not where we think it is going. In regards to President Obama, we did provide statistics on market performance in the first few months of the new Presidential term, and we made comments that reasons for the declines could have been caused by investors wary of the new policies. We have also posted on the strong returns since then for his first year in office. If you're wondering where we think the market is going now, you'll need to be a Premium member, but we didn't hate the market at 700, we actually loved it.

[dj]

Premium subscriber, that is where we make our market calls....ya sure...lets see that old post.