By now, everybody knows how the Business Week ‘Death Of Equities’ Cover in the early 80′s marked the beginning of the most powerful 20 year equity bull market in history. Since then it’s been fun to play the ‘spot the contrarian indicator cover’ game. Look further down the right sidebar for examples of classic top of the RE bubble covers, in the US and Vancouver. The above illustration is from a very cute analysis of cartoons of bulls and bears on Barron’s covers over the last 2 years, as contrarian indicators, from Serge Farra, etf-corner.com, 31 Oct 2010.
This recent Time magazine cover is emotionally complex and doesn’t easily act as a predictor either way. But still, perhaps that sad fence predicts a mild bounce in US RE (though we believe the ultimate US RE lows are still further ahead).