Best Indicator Ever: The Simpsons Foreclosure

The oft-cited “magazine cover indicator” suggests that by the time an investment theme makes it onto the cover of a general interest publication like Time or Newsweek, the real move has likely already been made.

In the television age, "The Simpsons" might be a good substitute. In this week’s episode, the family was foreclosed on, hilariously satirizing the real-life drama now affecting many homeowners. Could this be the sign the worst of the housing crisis is over?

Is the Simpsons’ foreclosure a buy signal?

There is some precedent here. Fans will recall “I Am Furious Yellow," in which Bart’s web show “Angry Dad” is bought by an Internet company just as the technology boom craters. Ironically, that episode premiered on April 28, 2002, right as dotcom stocks began a massive rebound from bear-market lows.

Homer’s Best:

Interactive Week Index (IIX) - 4/28/02 through 3/12/05

It has been estimated that as much as 45% of the world’s wealth has been destroyed over the past 18 months, a collapse that has affected everybody from the billionaire to the busboy. When the history of this era is written, one of the most honest images will have to be Hong Kong stock commentator Agnes Wu Man-Ching bursting into tears upon seeing shares of HSBC (HBC) plummet 24% in the final few moments of trading.

I’ve been there, Agnes, as has everybody who’s ever experienced the helpless feeling of watching a dearly held position crumble. Shares have since rebounded throughout the week.