In investing lore, there exists the fabled idea of a magazine or newspaper indicator that tells you the market is about to do the exact opposite of what the press has just broadcast.
And by this logic, this week’s cover of Bloomberg Businessweek should make stock market bulls rejoice… because this week’s cover is full of bears.
Over the last couple of weeks, stocks have been particularly unsettled, with the Dow and S&P 500 both falling more than 10% from their recent all-time highs hit earlier this year.
Bouncing around markets are fears about China, the Fed raising rates, another crisis in Greece, and as has been the case for the last 5 years, vague concerns about “global growth.”
And while stocks in China nose-dived earlier this summer after a frantic 1-year rally that saw the Shanghai Composite double, US stocks had mostly stayed above the fray.
But in the last month, things in US stocks got ugly.
And while of course it remains to be seen whether US stocks have reached their nadir, anybody who wants to look at contrarian indicators will certainly find one when one of the most visible business publications runs a cover full of bears.