The Mainstream Financial Media Wants to Brainwash and Bankrupt You
Dec 09, 2010
Dan Ferris writes: The financial news media is conspiring to blow up your brokerage account and flush your retirement savings down Ben Bernanke’s new commode.
I’m not saying the editors of top financial newspapers and magazines sat down together and hashed out a plan to brainwash you and bankrupt you. No, I really don’t think they did that. It only looks like they did it…
The conspirator I’d like to focus on today is Barron’s, one of the most well-respected publications in the industry. By the look of it, you’d think it made a bet that it could nail the best “cover story sell signal”…
The cover story sell signal is one of the best contrarian indicators around. Whenever a trend is deeply ingrained enough in the public mind to sell magazines off the newsstand, you know it’s about to end.
For example, in March 1999, oil was around $15-$16 a barrel. The cover of The Economist showed a picture of two oil workers covered in the stuff, with the headline, “Drowning in Oil,” implying weaker oil prices. That was the beginning of the massive bull run that eventually took oil to $147 a barrel in 2008. Another famous example is from BusinessWeek. In August 1979, the cover said, “The Death of Equities.” Stocks bottomed in the second quarter of 1980, retested the bottom in 1982, and took off on the biggest bull market in history.
These days, you’ll find the most irresponsibly ostrich-like, head-in-sand attitude on the cover of the November 29 issue of Barron’s…
It shows a retiree lounging with a cocktail next to a waterfall of money. The headline promises, “How to keep the income flowing.” The article inside is called “Going with the flow.”