Hi orchid, following the theme, broker's views in my opinion carry a similar weight as do chartists predictions because they both attempt, in their own way, to display a superior knowledge of an unknown quantity; ie. the future.
It all plays to the punter's perceptions of reality. That is, chartists do little more than pretend they know how to read a crystal ball. Because punters want to win, chartists are particularly attractive to them because 95% of the time chartists present charts of a pending upward move. Believe them with blind faith at your peril.
Brokers on the other hand give an illusion of superior intelligence because they offer support to their punts by way of a mountain of computer generated ratios and figures that are incomprehensible to the vast majority of punters. Confused and bamboozeled, the punter concludes the broker must know the future because he has clearly demonstrated his superior intelligence. Yet you will always find contradiction amongst brokers and their investment tips. If their figures and predictions were based totally on fact, then they should all be in some form of agreement.
Therefore, brokers too are doing little more than fortune telling and punters once again, can blindly believe them at their peril.
There are a multitude of "unknowns" that come in to play and one in particular is whether the company is passing on the whole truth and nothing but the truth. The majority of companies I've been involved with, have proven this is very rarely the case. So that puts a big stick in the spokes of the wheel of the bicycle that both the chartists and brokers are pedalling to the market.
So if you suspect Macquarie's views are influencing the market, you "could" be correct, but whether Macquarie's views will prove correct or not, is in the hands of FKP management and the Gods.
FKP Price at posting:
53.5¢ Sentiment: None Disclosure: Held
