Magazine covers have been used as a contrary indicator. It’s not that the magazine editor’s have poor timing. Instead, the editors choose a cover that reflects public sentiment and will sell well.
One of the most well known magazine covers is from an August 1979 issue of Business Week. The headline: “The Death of Equities.” Well, not quite.
Coinciding with the 2002 stock market low, the July 29 issue of Business Week ran the headline, “The Angry Market.” That marked the beginning of a five-year bull market.
How about the March 2009 low? Business Week ran “When Will the Bull Be Back? Most signs point to more stock market pain. But opportunities are emerging for very, very long-term investors.”
One of the most well known magazine covers is from an August 1979 issue of Business Week. The headline: “The Death of Equities.” Well, not quite.
Coinciding with the 2002 stock market low, the July 29 issue of Business Week ran the headline, “The Angry Market.” That marked the beginning of a five-year bull market.
How about the March 2009 low? Business Week ran “When Will the Bull Be Back? Most signs point to more stock market pain. But opportunities are emerging for very, very long-term investors.”
It is a bit unfair to point to magazine covers at important market lows because it ignores some other covers that didn’t coincide with the low. Nevertheless, the magazine covers reveal the public mindset at important lows.
David Vomund
No comments:
Post a Comment