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"The Economist" Cover Curse, Explained. (as in "The Madden Curse" ) and other observations.
https://www.readtrung.com/p/the-economist-cover-curse-explainedAlso says a bunch about groupthink.
"Corporate managers read The Economist because their managers read it because their managers read it."
Over the years, The Economist has gained a reputation as a “contrarian indicator”.
What does that actually mean? Well, the weekly publication — which was founded in 1843 — is read by basically every manager, executive and decision-maker in the business and political worlds.
By the time an idea is mainstream and important enough to make the cover of The Economist, all of the upside from an investing standpoint has probably been squeezed out (this is related to the stock-picking aphorism that states “buy the rumor, but sell the news”).
We will walk through some famous examples of The Economist cover calling a top or bottom later in this article. But first, let’s talk about the magazine’s appeal and how it helps to form consensus.
What does that actually mean? Well, the weekly publication — which was founded in 1843 — is read by basically every manager, executive and decision-maker in the business and political worlds.
By the time an idea is mainstream and important enough to make the cover of The Economist, all of the upside from an investing standpoint has probably been squeezed out (this is related to the stock-picking aphorism that states “buy the rumor, but sell the news”).
We will walk through some famous examples of The Economist cover calling a top or bottom later in this article. But first, let’s talk about the magazine’s appeal and how it helps to form consensus.
I am reminded that every astronomical observatory's quality of "seeing" seems to go down once it's sited and/or built.
Why? Because astronomers study weather and visibility for many years before deciding on a site.
Picking one at its current peak could mean that "it can't get any better" and it often doesn't.
And then there's Barrons, but I gave up on that ages ago.