Make enough Crash calls, someday you will be correct and be on TV!
Remember the weekend show, Wall Street Week?
Elaine Garzarelli
Garzarelli’s Bear Call: Garzarelli gained some notoriety on Wall Street back in 1987 when she predicted an imminent collapse of the U.S. stock market on October 12, just a week prior to the 22% Black Monday crash. Garzarelli founded her own business, Garzarelli Research, in 1995 and had been ranked as Wall Street’s top quantitative analyst for 11 consecutive years in Institutional Investor magazine’s poll.
But then there was this:
Garzarelli’s call proved to be way off the mark
On July 23, 1996, Garzarelli suddenly dropped her 6,400 target for the Dow and told her clients the market would soon drop between 15 and 25%, a move suggesting Dow 4,300. The call sent the Dow down from a 43-point gain at around noon to finish the day down 44 points.
In the month that followed, the Dow gained 6.3% and in the six months following the sell call, the Dow was up another 27%. In fact, Jason Zweig notes the Dow has never come within 1,000 points of 4,300 since Garzarelli’s infamous call.
Laszlo Birinyi, John Dessauer, and Michael Holland are this week's panel alongside Garzarelli Capital President Elaine Garzarelli in this edition of Wall $treet Week from 1995.
Edited by Rogerdodger, 19 October 2020 - 11:34 AM.
