Wed 16 Apr 2008
Rising prices for slow snails
Posted by Prieur du Plessis under Investment, Markets, Money
Magazine covers, especially as far as international publications are concerned, frequently get their timing wrong on “big picture” events. As such, covers are often used as contrarian indicators. Intuitively it does not seem that this will be the plight of the cover of the latest Economist, but let’s keep an eye on how events unfold.
On second thoughts, the magazine’s emphasis should perhaps have been on the price of the escargots going through the roof, together with food in general, rather than on the slowdown per se. Full marks in any event for a fabulous illustration.
Source: The Economist, April 12, 2008.
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April 16th, 2008 at 6:34 pm
Barry Ritholz commented on this cover, too, and others recently as to why they are NOT contrary indicators, in keeping with your comment.
April 16th, 2008 at 6:40 pm
Mr Obvious: I alerted Barry to the cover and we exchanged some ideas. I truly think The Economist should rather have higlighted the “fresh story”, i.e. the rising price of snails (or food in general)!
April 17th, 2008 at 8:54 am
But Prieur - I have heard from the very best of sources that we are simply in a brief slowdown, that housing is bottoming and earnings will be over 15% in H2!
Yes sir, increases in exports and the rebounding housing market will start the next bull market later this year.
Also, the investment banks are planning to merge with the Fed, so they can better direct Ben’s efforts.
At least this is the only way I can explain the rally today …
April 17th, 2008 at 4:30 pm
Very wry, Mr Hancock. Very wry indeed. How nice that the investment banks will help Ben.
April 17th, 2008 at 5:31 pm
It was also heartening to hear Mark Mobius, he of Asiamoney mag’s list of Top 100 Most Influential People Who Frequently Wear Pancake Makeup, declaim to a talking head at Bloomberg tv that the “worst is over” regarding the the recent unpleasantness in the credit markets.
Sounds like he’s lobbying for a spot on the board of Mr. Hancock’s Fed IPO.
April 18th, 2008 at 12:09 am
The Economist is a great publication. You can get headlines/stories pushed to you via email.
I remember back in 1999? they did a cover/story on oil at $10 a barrel. Their analysis showed oil going lower. Of course, it was almost the exact bottom.