Do Recent Bullish Magazine Covers Signal a Market Top?
• Recent magazine covers touting the stock market rally have raised questions about the "magazine cover curse," which suggests that broadly bullish covers signal a market top
• While some see these covers as contrarian indicators, others argue they may still have some validity or the indicator itself has become less useful as more people are aware of it
• Historically, big picture magazine covers correlating with market turns have been most predictive when mainstream publications spotlight trends late in the game
• Some bulls actually worry when former bears turn bullish, signaling elevated optimism that leaves markets vulnerable to disappointments
• As with most indicators, exceptions exist, so the predictive power of any one magazine cover remains uncertain