Posts filed under “Contrary Indicators”
How is this June 1, 1962 Time Magazine issue? Perhaps this is a more significant example of the Magazine cover indicator?
That cover, showing a Bear mauling a Bull, took place when stocks were getting whacked.
As you can see from the chart below, this obviously Bearish cover worked well as a contrary indicator — it was not a bad entry point to get long equities:
Quite a while ago, I had an interesting conversation with a smart fundie manager. We had opposing views about many things. In particular, we disagreed upon was the value of (non-price) sentiment indicators. His argument was that when stocks get cheap enough — as reflected in their Prices, P/Es and cash flow measures — other…Read More