SatPost by Trung Phan
It featured a photo of a bull being carried by balloons with the headline “How High Can Markets Go”. The cover suggests that the current stock market bull rally may be running out of steam.
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 a big fan of The Economist and the publication’s app is one of my most-visited smartphone destinations. There are nearly 1.2 million other subscribers who share this same affinity and here are a few reasons:
