SMU Assistant Professor of Finance Roger Loh looks at how accurate analysts’ predictions are and how exactly investors should interpret their reports. In a recent study that was featured in Bloomberg and The Economist, Assistant Prof Loh found that although analysts’ predictions were less accurate during economic crises, they were paradoxically taken more seriously by investors and had a larger impact on stock prices. He intends to further his research by looking at other factors that influence investor decisions. His preliminary data indicates that investors should randomise their decisions if two choices are very similar, but in practice they do just the opposite.