Paper of the week, Bonus Edition: Business magazine covers as contrarian indicators

From a 2007 paper in the Financial Analysts Journal by Tom Arnold, John Earl, and David North:

Headlines from featured stories in Business Week, Fortune, and Forbes were collected for a 20-year period to determine whether positive stories are associated with superior future performance and negative stories are associated with inferior future performance for the featured company. “Superior” and “inferior” were determined in comparison with an index or another company in the same industry and of the same size.

Statistical testing implied that positive stories generally indicate the end of superior performance and negative news generally indicates the end of poor performance.