This week’s New York magazine — a non Business publication — has a rather bearish cover discussing “The Emasculation of Wall Street.

Last week, I mentioned the Barron’s cover was somewhat bullish, with the caveat that Barron’s is a business weekly. New York magazine is more general interest — its not Time or Newsweek, because it covers Wall Street in its back yard.

Meanwhile, Bloomberg is out with this headline today: Investors Fearful as Stock Rally Best Since 1987.

Still, I suspect the NY Mag cover is a bullish sentiment indicator.

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Source:
The End of Wall Street As They Knew It
Gabriel Sherman
NY, Feb 5, 2012
http://nymag.com/print/?/news/features/wall-street-2012-2/

Category: Contrary Indicators, Investing, Psychology

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12 Responses to “Magazine Cover Indicator: New York “End of Wall Street””

  1. SivBum says:

    I read the article earlier from the morning reading list. Looks like some one-percenters have thrown in their towels on both income and tax equality:


    … And, knowing a losing position when they see one, much of Wall Street is onboard with some of the tax changes Obama has been proposing. “I would tax dividends and interest income higher and capital gains,” said Dimon. “Have a higher tax rate. If you said there’d be a certain percent rate for people making over a million dollars and a higher percent rate for people making over $10 million, no problem with me. I don’t think people should be able to pass unlimited amounts on to their kids.”

    Even Home Depot founder and financier Ken Langone (“You bet I’m a fat cat,” he told me proudly) isn’t arguing for the status quo. “I would enthusiastically embrace a tax increase,” he told me. “I’m more than willing to pay taxes. I’m saying, take the money and use it to lower the debt.”
    …”

  2. [...] demise of Wall Street and the magazine cover indicator.  (Big Picture, [...]

  3. BennyProfane says:

    Interesting article, although nothing really new to readers here who, I suppose, follow this closer than most. I think that most are being publicly contrite, while working very hard behind the scenes to put a Republican in the White House next year. If that happens, it’ll be game on and a bright future of eight figure bonuses again until the next crash.

  4. panskeptic says:

    Since it was an obsession with BSD’s that almost brought down the global financial system, perhaps a little saltpeter in the food might not be such a bad thing.

  5. freejack says:

    CalculatedRisk has called a bottom in housing (note: new home sales, housing starts and residential investment – NOT a bottom for price, yet).
    http://www.calculatedriskblog.com/2012/02/housing-bottom-is-here.html

  6. BennyProfane says:

    btw, Has everyone seen Bill Moyers interview John Reed recently? I haven’t seen it mentioned much, so, here’s the link: http://billmoyers.com/episode/full-show-how-big-banks-are-rewriting-the-rules-of-our-economy/ Well worth watching, even if you consider Moyers a left wing radical.

    I mean, John Reed of all people. And he doesn’t speak too kindly of Sandy Weill.

  7. Futuredome says:

    “Interesting article, although nothing really new to readers here who, I suppose, follow this closer than most. I think that most are being publicly contrite, while working very hard behind the scenes to put a Republican in the White House next year. If that happens, it’ll be game on and a bright future of eight figure bonuses again until the next crash”

    Considering that DLC bought the financial services side to the Democrats after organized labor was destroyed, it would be a turn of events. The Democrats are basically Republicans of the mid-20th century variety. Pro-Manufacturers,financial services and reducing oil dependence(subsitutes for cheap, foreign oil of yesterday).

    Due to this switch, they also have to dump some of the Republicans policies. Using tax policy to drain some liquidity out of hedge funds and derivative markets, which Republicans roam(along with Health Care and FF energy).

  8. mad97123 says:

    Warren Buffett’s appearance on the cover of Time as “The Optimist” and bullish on American stocks could be seen as Bearish.

  9. I’d wager that ~80% of “New York”-readership is registered (D) ..

    I think the ‘Cover’ is, merely, “Election-Year”-Agitprop (aka “Red-Meat” ‘for the Base’)

    there are, still, ‘Felons on the loose’, no? (at the min.)

    Hard to understand how that ‘Cover’(the Idea of it), in any *real Sense, could be supported (by Fact(s))..

  10. Frwip says:

    I would say the cover of the New York mag is a bullish indicator but not as a contrarian indicator. As (fairly) noted, Wall Street is indeed very much within the remit of a magazine covering NY. So nothing weird on its coverage.

    But I would say it’s bullish on substance. What is bad for Wall Street tends to be good for the markets in the medium/long term. It’s when Wall Street is going gang-buster that investors need to worry. It means somebody somewhere is getting robbed blind big time, and the most likely ones to get robbed blind are the investors themselves.

  11. doodie says:

    Yes, Barry, but what about this: “Investors Jump Back Into ETFs to Join in Stock Rally”

    http://www.cnbc.com/id/46286016

    Seems to me that individual investors have jumped in on the market rally late, using ETFs rather than mutual funds.

  12. Certified says:

    I don’t see how this indicates we have just passed the investment Revulsion phase and a new 30 year boom is about to begin in the stock market. I’m looking forward to the headline that reads something like “The Death of Equities” when at the same time interest rates are again at 20%, for the replay. Yes, I bought the market when the DOW was 770 when most everyone else decided to lock in the sky high fixed rate of return. However, with perpetual 0% interest rates, the market pricing system is so awfully broken, nobody knows what is the future value of anything anymore with any probability; it is somewhere between zero and infinity and changes like the weather. There won’t be any boom until ZIRP is finally resolved and the bond market sees revulsion.

    ~~~

    BR: Just remember, the BW Death of Equities cover was 1979 — the start pf the next bull market was 3 years later