The truth behind the bullish obsession of well-known analysts: Is it the fate of sell-side research or market alpha?

【BlockBeats】On-chain data analysis platform founder Ki Young Ju recently made an interesting observation. He pointed out that a long-term bullish analyst, Tom Lee, is actually a typical representative of the “perpetual bull” — based on data, his bullish and bearish viewpoints are roughly in a 10 to 0 ratio.

This sounds a bit absolute, but the underlying logic is quite realistic. Whenever the market shows signals of a potential correction, this analyst will briefly concede, acknowledging the downside risk and adjusting the risk ratio to about 9 to 1. From a relative perspective, this is what is called the “alpha value” — the source of excess returns.

Interestingly, Ki Young Ju describes this phenomenon as “an inevitable fate for those in sell-side research.” Implicitly, this is not a personal issue but an ecological dilemma of the entire industry. Analysts need to maintain popularity and attract attention, so they fall into this somewhat awkward situation — needing to stay hot while occasionally showing weakness, trying to find a balance between the two. This tension seems to be an inescapable destiny for sell-side research.