1.When you use IBD to invest your hard-earned money, be careful. Since USA market becomes more efficient than before while IBD still uses a little out-of-date stock selection model , IBD stock list becomes laggard when the stocks are selected. This is not because selected stocks are laggard over certain time of period rather than IBD behind the curve. That is: in the latter part of bull markets, many quality stocks are well priced in all good news well before IBD finds them.
2. IBD is profit-oriented. It aims to let readers use it on daily basis. As matter of fact, during 2009-2013, this daily IBD usage will only let you under-perform market. However IBD claims to outperform. That is untrue: excluding buy/sell on its all sort of market status calls , IBD underperforms market by over 10% per our research.
3. I am not saying IBD is not useful. What I am saying that IBD becomes less useful!
Hot money chases the best looking stocks that IBD highlights. When someone yells fire, the hot money flees and the short sellers jump on board to drive the stock even lower. Finally a base is built and the process starts all over again. In order to make money in stocks, you must deal with this!