Contrarian investors will have some acquaintance with the concept of the "shoeshine boy" effect. This is the theory that a buy or sell is signaled for an asset class based on extreme sentiment for or against it in the media or society in general.
The term is taken from an alleged story of how John F. Kennedy's father sold his stocks prior to the 1929 crash because his shoeshine boy was giving him stock tips over his shoes. Kennedy correctly deduced that this was a sign of an extremely overbought market and took it as a sell signal.
On the flip side of the coin, there is also the famous "Death of Equities" cover from Business Week published in August 13th 1979. The analysis that high inflation was a dampener to stock growth may have been correct but inflation was not far off in peaking and stocks were about to begin their great 21 year bull market...
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