[quote=partypup]I saw the cover of Newsweek while I was in line at the store today. the headline: “How Obama can talk us out of a depression”. it could have just as easily read: “How Obama is going to try to talk us out of rioting and burning down the motherf****** house”.
LOL[/quote]
Before this notion gets lambasted, I think there’s at least a 50% likelihood that we’re headed to 600-ish on the S&P, so I’m still bearish, but having said that… there is a widely-known “Magazine Cover Indicator” in investing. And its record as a contrary indicator is almost flawless. “Death of Equities” in 1982; “Man of the Year: Jeff Bezos” in 1999; “Are You Missing Out on the Housing Boom?” in 2006, etc. etc. The idea, of course, being that once an idea has sunk itself so deeply into the public’s consciousness that it’s on a major magazine cover, then it’s run its course. I’ve been telling people that things are so negative that we’re likely getting close to the bottom on stock prices, but I’m waiting for some magazine covers. I don’t think this one quite qualifies because it implies that Obama can talk us out of a Depression, which is still a little too optimistic for me. But once the magazines have covers that say, “How You Should Be Preparing for Economic Armageddon,” (and I think we’ll see them this year), well, that will be the bottom for stock prices (at whatever level that happens to be). Even as housing prices and the economy continue to decline into next year.
