Market Forecasting Made Easy

Written years ago, but still true today.

Magazine covers and news headlines often give wonderful clues for trying to predict the future of market ups and market downs; a consensus of popular thinking right before your eyes.

Magazines, newspapers, and the media may be the first to know but usually are the last to figure it out. When they are sure it's happening, when they print it, it has, like most news, happened. It is done. It is over!

Newsweek, September 9, 1974

"It's over, bears are out."
START OF A MAJOR RALLY

 

Business week, August, 1979
"The death of equities."

START OF A MAJOR RALLY

 

Time, September 14, 1987

"The Selling of America -
Foreign Investors Buy-Buy-Buy"
Institutional Investor September, 1987
"The wonders of the Magellan Fund." Fortune, September 1987
"Are stocks too high?"

(They both said no.)

MARKET CRASH



Fortune, October 1987

"Market Crash" Newsweek, October 26, 1987

"Is the party over?" (they said yes)

BEGINNING OF LARGEST RALLY IN HISTORY



The Atlantic, October 1989
"The Coming Global Boom."
THE BEGINNING OF GLOBAL RECESSION

 

The Economist, October, 1989

"Just sniffing around - the bear again."
THE CONTINUATION OF THE MARKET FOR TWO YEARS TO NEW HIGHS

 

U.S. News and World Report, November 12, 1990
"Can your bank stay afloat?" (They said no.)
BEST TIME TO BUY BANK STOCKS


Step back. Read the headlines. You will know what the world is thinking at a glance. Pull out old copies of various business and financial magazines at your dentist's office to find out what you should or should not have done and at your local news stand for current issues to decide what you should or should not do now.

Whatever the bold print says usually represents the extreme end of the move of the pendulum and, as you are reading the headlines, the cycle will soon go back the other way.

Just do the opposite of what the headlines say.

You can print that!