I am looking for a good (relatively clean) copy of the August 13, 1979 Business Week magazine. If anyone has located one of these, please contact me with sales information.
Here’s why: Hanging on my office walls are several infamous magazine covers from days gone by. On the flip side, I tape a chart of the Dow over the three years following publication date. The exercise is rather instructive.
I’ve discussed this many times over the years: Most comprehensively, in the Contrary Indicators of 2000-03 Bear Market, more specifically in the The Magazine Cover indicator, and with actual examples in the Februrary 2004 Uh oh: Forbes Cover Screams “Tech is Back!” and Uh-Oh: Apple on the Cover of Fortune, as well as a rather frivolous but prescient political example Howard Dean and the magazine cover indicator.
What I am missing from my collection of magazines and/or covers is the August 13th, 1979 and Business Week Magazine’s cover story featured “The Death of Equities”. The cover is a photo of a downed paper airplane fashioned from a stock certificate. The sub-caption decries “How inflation is destroying the stock market.”
The downed paper (stock certificate) airplane in the picture was actually surrounded by the crumpled remains of other “crashed” paper airplanes. An excerpt of the article reads:
Wall Street looks beyond stocks; Moving into options, futures, buying into insurance
The masses long ago switched from stocks to investments having higher yields and more protection from inflation. Now the pension funds–the market’s last hope–have won permission to quit stocks and bonds for real estate, futures, gold, and even diamonds. The death of equities looks like an almost permanent condition–reversable someday, but not soon.
UPDATE: FEBRUARY 28, 2005 5:29 PM
Most of the full text of the article can be seen here:
Business Week’s “The Death of Equities” Revisited