Attention Economy


Saturday, April 22, 2023

The Magazine Cover Curse

The Economist Cover:

Is the American Economy Awesome?
https://www.nytimes.com/2023/04/21/opinion/us-economy-gdp.html
 
A somewhat empirical look at The Magazine Cover Indicator
https://medium.com/@mbrentdonnelly/a-somewhat-empirical-look-at-the-magazine-cover-indicator-2d0ca835f7d1
The Magazine Cover Indicator is a belief commonly held by financial market participants that when a financial story or market theme is displayed on the cover of a magazine, that theme or the related trend is near exhaustion. In other words, magazine covers are believed to be reverse indicators.
Two very famous examples are when BusinessWeek’s cover screamed: “The Death of Equities”, at the stock market lows in 1979 and when The Economist proclaimed the world to be: “Drowning in Oil” just as oil bottomed in 1999.
 
Investment Signals in a Magazine Cover
https://www.bloomberg.com/opinion/articles/2014-10-27/investment-signals-in-a-magazine-cover
The magazine cover story for a general news magazine can serve as a contrary investment indicator. 


My personal favorite: