{"id":42156,"date":"2013-09-19T05:36:43","date_gmt":"2013-09-19T09:36:43","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=42156"},"modified":"2013-09-19T05:36:43","modified_gmt":"2013-09-19T09:36:43","slug":"get-a-load-of-this-bull-from-barrons","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/09\/19\/get-a-load-of-this-bull-from-barrons\/","title":{"rendered":"Get a Load of This Bull From Barron\u2019s"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

Does Barron’s<\/i> have a point? Or is it simply spreading fear?<\/p>\n

In the latest issue, Randall W. Forsyth warns about passing by your local newsstand.<\/p>\n

Apparently, there’s an image lurking there that’s the “kiss of death” for the stock market.<\/p>\n

It’s so ghastly, in fact, that it prompted the researcher who tracks these appearances to gasp and use the Lord’s name in vain. (Repent!)<\/p>\n

Supposedly, the appearance alone means there’s an 80% chance that the current bull market will come to an end within a month.<\/p>\n

Now, we’ve made it a habit here to routinely dispel market mistruths.<\/p>\n

Case in point: We told you to shrug off the fearmongering in the headlines about September being the worst month for stocks<\/a>. Why? Because the double-digit rally we witnessed leading up to this month actually pointed to even more gains.<\/p>\n

Sure enough, the S&P 500 Index has traded higher in nine out of the last 11 sessions. Total gain for the month so far? A stout 4.4%, compared to the average return the mainstream financial rags told you to expect for the month of negative <\/i>1.1%. <\/a><\/p>\n

Armed with the data, it’s time to dish out the truth again. So here goes\u2026<\/p>\n

Warning: Graphic Content<\/b><\/p>\n

This is the image that should scare you stockless.<\/p>\n

\"\"<\/p>\n

It\u2019s the latest cover of TIME Magazine<\/i>, emblazoned with the iconic Wall Street bull.<\/p>\n

As Forsyth says, \u201cThe cover of general-interest magazines has been a redoubtable contrarian indicator, since, well, Henry Luce came up with the idea of TIME Magazine<\/i> in the 1920s.\u201d<\/p>\n

Forget the content of the articles, though. (The most recent TIME <\/i>article isn\u2019t irrationally exuberant.)<\/p>\n

According to expert magazine tracker, Paul Macrae Montgomery of Universal Economics, it\u2019s the image<\/i> that matters most. It carries utmost importance because of the broad message it sends to everyday Americans.<\/p>\n

In fact, Montgomery told Forsyth, \u201cIf historic probabilities reliably forecast the future, there\u2019s an 80% chance the market will top in a month and will be lower a year from now.\u201d<\/p>\n

No doubt, that\u2019s what prompted Forsyth to write his most ominous line, \u201cFor stock market investors, there is no kiss of death like seeing a bull on the cover of TIME<\/i>.\u201d<\/p>\n

Scared? Don\u2019t be.<\/p>\n

It\u2019s Different With TIME<\/i><\/b> <\/i><\/b><\/p>\n

The classic example of the magazine cover indicator is, of course, the August 1979 issue of BusinessWeek<\/i>. It proclaimed \u201cThe Death of Equities.\u201d And then the markets went on to enjoy two decades\u2019 worth of prosperity.<\/p>\n

Apparently, Forsyth forgot to ask if the accuracy of the indictor changes with each circulation. Because according to Laszlo Birinyi of Birinyi Associates, things are different when it comes to TIME<\/i>.<\/p>\n

\u201cOver the last 65 years, TIME Magazine<\/i> has featured the picture of a bull on its cover multiple times,\u201d says Birinyi. \u201cWe\u2019ve gone back and pulled the historical TIME Magazine<\/i> covers and have found that the myth has been mostly incorrect.\u201d<\/p>\n

\"\"<\/p>\n

Almost 70% of the time, stocks are actually higher<\/i> one year later, averaging a return of 12.79%. There\u2019s only been one instance, back in 1948, when the market hit the skids.<\/p>\n

So much for that \u201ckiss of death\u201d thing, huh?<\/p>\n

Bottom line: Don\u2019t automatically do the opposite of what magazine covers tell you. And shame on Barron\u2019s<\/i> for suggesting as much. Not long ago, on April 22, its cover featured a bull on a pogo stick and the headline \u201cDow 16,000!\u201d Yet they weren\u2019t exactly telling investors to bail because of it.<\/p>\n

Now, I\u2019m not saying the stock market is guaranteed to go higher from here. Only that nobody knows when <\/i>it\u2019ll stop for sure. Not even the top brass at magazines who decide on the art and headlines to accompany each issue.<\/p>\n

And that means, as always, the best strategy for us is to stay invested and simply mind our protective stops. Period.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post Get a Load of This Bull From Barron\u2019s<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Get a Load of This Bull From Barron\u2019s<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Does Barron’s have a point? Or is it simply spreading fear? In the latest issue, Randall W. Forsyth warns about passing by your local newsstand. Apparently, there’s an image lurking there that’s the “kiss of death” for the stock market. It’s so ghastly, in fact, that it prompted the researcher who tracks these … <\/p>\n

Continue reading “Get a Load of This Bull From Barron\u2019s”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42156","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/42156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=42156"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/42156\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=42156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=42156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=42156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}