Monday, August 8, 2011

The New Yorker bottom?

Remember the market adage about the magazine cover indicator? When a popular magazine (not financial one such as the Wall Street Journal, Barrons or the Financial Times) writes about either the devastation of bear markets or the beauty of stocks, then it's a contrarian sign marking either a top (in the case of exuberance) or bottom (in the case of excessive bearishness).

I just came across the latest cover from the New Yorker and the lead commentary is entitled "How bad is it out there? The economy after the debt ceiling agreement":

There is no doubt that the markets are oversold. Does the New Yorker cover mark a bottom, even if it's a short or intermediate term bottom?


moremiles said...

Well I started buying cautiously on Friday & Monday so I am thinking so. However I am still saving some of my ammo!

Roger Heath said...


Why do you say the market is oversold?