This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Dumbest Things on Wall Street: Oct. 21

4. Cliggott's Last Call

Don't worry about getting the hook Doug Cliggott. It's not you. It's them.

Alright, it's you too. But at least you're not alone.

Cliggott is out as U.S. equity strategist for Credit Suisse Group AG (CS - Get Report), according to a Bloomberg report last Saturday. Cliggott is apparently still working for the Zurich-based bank, yet will no longer publicly make the firm's S&P 500 forecasts after his calls proved to be the least accurate of any prognosticator on the Street.

In January 2010, Cliggott called for the S&P 500 to be unchanged for the year. Unfortunately (for him), the index added 13% to finish at 1,258. His year-end estimate in September 2010 was 1,075, making him the Street's biggest loser in a Bloomberg survey. Cliggott's final call for the bank came on Aug. 22 of this year, when he reduced his year-end S&P estimate to 1,100 from 1,275, only to see the index rally more than 7% to its current level back above 1,200.

Oh man. Talk about a cold streak. This guy should forget Wall Street and take his skills to Vegas to work as a cooler.

Regardless of Cliggot's terrible timing, all that bearishness leads one to wonder why Credit Suisse would hire such a nabob of negativism in the first place. Were they not aware that the role of strategist is generally reserved for market cheerleaders? What in the name of Abby Joseph Cohen were they thinking bringing on such a downbeat dude?

That said, even the most bullish strategists are not immune to getting the boot in today's tense Wall Street environment. Bank of America-Merrill Lynch's (BAC) chief U.S. equity strategist, David Bianco, was squeezed out of a job last month only three days after hiking his12-month S&P forecast to a heady 1,450. So maybe it's just safest to stick with the pack.

Ironically, if Cliggott wanted to make a prescient bearish call, then he should have taken aim at his employer, not the S&P.

Since Cliggott joined Credit Suisse in October 2009, the bank's stock has lost more than 50% of its market value. The S&P, on the other hand, is up over 10% since his arrival.

At the time of his hiring, Cliggott said he was "especially pleased to be joining Credit Suisse at a time when the Bank has so much momentum."

Well, he was right about that much at least.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GMCR $91.67 -0.30%
AAPL $93.74 0.00%
CS $15.21 0.00%
CROX $8.35 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs