Uh oh: Forbes Cover Screams "Tech is Back!"

Thursday, February 05, 2004 | 05:44 AM

Forbes.jpg

Uh oh: a breathless business magazine cover, extolling the virtues of technology stocks, after a 57% rise? This is "Not a good thing." Here was our take on the matter back in the fall of 2003:

"The covers of national news magazines and business publications show what’s making news today. The markets, on the other hand, are a future discounting mechanism, anticipating future events, and reflecting them in price and trend.

Magazine covers sell magazines. Covers stories are featured because they are resonating with the public at that exact moment. When an editorial committee decides something is worthy of their publication’s highest profile [the cover], it often is just as that trend has is reaching its climax.

Why does this work as a contrary indicator? When a magazine covers focus on the Bear Market for example, it’s already been fully priced into the market. Whatever response the magazine engenders is typically the last spasm of its cover subject.

For more details, see our discussion on Contrary Indicators . . .

Thursday, February 05, 2004 | 05:44 AM | Permalink | Comments (0) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00d83538af1369e2

Listed below are links to weblogs that reference Uh oh: Forbes Cover Screams "Tech is Back!" :

Comments

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner