A commitment to intellectual honesty, according to Mistry, is what separates truly precious analysts from the simple data suppliers or yes-men. “If you simply agree with everything that the merchant says, or if you only present information that confirm their existing biases, then you don’t really add value,” he said. “Your role is to provide a critical and independent perspective – even if it is not always what the merchant wants to hear.”
Of course, it is a delicate balance to find. Pushing too much or too often, and analysts are likely to harm their credibility and their relationships with traders. But do not manage to tell the truth to power, and they risk becoming catalysts of confirmation and group thought. The best analysts, in Mistry’s experience, are those who can walk on this rope with finesse – firm in their convictions, but flexible in their approach.
Ultimately, the objective of the analyst -tread relationship is not to completely eliminate biases – an impossible feat – but to manage it effectively. By providing a critical counterweight to the natural prejudices of the merchant, analysts help to ensure that decisions are made on the basis of the best data and analyzes available, rather than intestinal instinct or pious wishes. It is a role that requires an equal part of technical skills, emotional intelligence and moral courage.
The importance of this critical control over biases will only grow. Merchants around intelligent and independent analysts will be better placed to navigate in any turbulence, entering opportunities and avoiding the traps that others may miss.
For Kurush Mistry, this is the proposal for the ultimate value of the analyst on the current market: not only to provide data, but to help traders to see beyond their own prejudices and dead angles. “We are here to help traders make the best possible decisions,” he said. “And sometimes it means telling them what they need to hear, not just what they want to hear.”
