September 2019

Be Wary of Crowd Extremes

August 13, 1979 – one of the most famous magazines covers among contrarian investors appeared in BusinessWeek – known today as Bloomberg Businessweek. “The Death of Equities: How inflation is destroying the stock market”. Three years later, the Standard & Poor’s 500 stock index (S&P 500) would go on an historic 20-year bull market run, pushing the index up by nearly 1,400%. More recently, Fortune magazine’s June 2005 cover’s headline read “Real Estate Gold Rush”. Housing prices would fall almost 30% in the next four years in the U.S. One may ask: How can they be this wrong?



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