The sentiment on European bank shares has hit a low, enabling investors to buy them at steep discounts
by Michael Brush
Market Watch
One of my favorite contrarian signals for investing is the “magazine-cover indicator,” and last week The Economist issued a doozy.
It trashed Italian banks under a magazine cover portraying a bus sporting Italy’s colors, teetering on the edge of a cliff. (How original.)
The Economist is always a little too harsh on Italy. But even discounting for that, the analysis of Italian banks and how rotten and risky they are — and, by extension, the country — was just savage.