NEW YORK ( TheStreet) -- Rob Rutschow might be bearish even in a normal world, but for a Wall Street analyst, he's a downright Scrooge.
Wall Street analysts have a longstanding reputation for being exceptionally rosy on the companies they cover, and recent data from FactSet supports this view. Just 6% of the ratings on financial stocks in the S&P 500 are "sells," while 48% are "hold" and 46% are "buy."
Rutschow covers just 10 companies, but he has two "sells" and five "underperform" ratings, compared to two "outperforms" and just one "buy." (CLSA where he works, has no "hold" rating.)
The analyst says he has "had a bit of a negative bias for the last couple of years." That is understandable, since he covers the U.S. exchange sector, where trading volumes have been abysmal, and assets have been flowing out of the U.S. and into fixed income, where, for the most part, companies he follows don't stand to benefit.Then again, bearishness may just be part of Rutschow's upbringing as an analyst. He learned his craft over 14 years from Mike Mayo, who takes special pride in being tough on the companies he follows.
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