>This piece of spam from thestreet.com might well qualify as a signal
>that the bottom is near: when the attention-grabbing headline is not
>"9 stocks that will double in value" but "17 big-name stocks you
>MUST SELL now," bear-market psychology must be near its maximum
>possible value...
Two questions:
1) Wouldn't your neoclassical colleagues read this as an unsound belief that crowd psychology matters in asset pricing, rather than rational expectations?
2) After five years and 400,000 "this is the next Microsoft!" spams, one bear-spam is enough to signal a turn? Seems to me the bull market psychology (every dip is a buying opportunity) hasn't really been undone, even among sophisticated economists.
Doug