Few brokers work out profit forecasts for themselves

Profit guidance by many companies over the last years has been pretty ropy, with scores of profit downgrades catching sell-side analysts at investment banks offside. As a result, analysts at brokers have come under fire for being too slow to warn clients to take profits as the two-year bull run peaked in March, and for not advising clients to snap up cheaper stocks following the slowdown. The S&P/ASX200 index has fallen as much as eight per cent since reaching a record high in late March, and the number of profit downgrades this financial year is in excess of 100.