Should You Invest The Opposite Of Companies On Magazine Covers?

[jeffrey]

After the stories appeared, however, the positions switched. The most negatively portrayed companies managed to beat the market by an average of 12.4%, whereas the outperformance of the media darlings fell to just 4.2%. This difference is not statistically that significant. What matters is that if news is sufficiently good or bad to catapult a company onto a magazine cover, then it is already reflected in the share price. Or, as the academics put it, “positive stories generally indicate the end of superior performance and negative news generally indicates the end of poor performance.�

Buttonwood | Covered in shame | Economist.com