Sunday, July 06, 2008

Media Headlines Indicating A Bottom?

Spotting the End of a Trend by Mike Norman at the Motley Fool talks about the Magazine Cover Indicator, writing "The premise is simple: When a major investment theme or trend shows up as the cover story of a well-known publication, then that theme is near an end or at least ready to take a pause."

Yesterday, I received the current issue of BusinessWeek and Barron's. Both cover stories were pretty gloom and doom, with Retirement Strategies for Tough Times on BusinessWeek's cover and The Bear's Back on Barron's cover.

Does this mean the broad stock market decline and credit crisis is almost over? My opinion is probably not. It still isn't bad enough, yet.

I believe the bottom may be close. However, the market just needs a major capitulation, and then it can get back to the business of a bull market. At that point, I think it would be time to definitely buy more stocks. When something like a "Get out of stocks" cover hits the news stands, I would say that capitulation has happened:-)

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This is not financial advice. Please consult a professional advisor.

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