Home » Predicting Crashes
Posted on 7 April 2011 | 7,631 views

The Black Monday Stock Market Crash Prediction

While working as a stock analyst at Shearson Lehman, Elaine Garzarelli became known for “predicting” Black Monday, the stock market crash of 1987. More accurately, her financial analysis indicated that the market was overvalued, leading her to sell about 50% of the stocks in her fund while making other hedges against a crash. Black Monday came about a week later which led to Elaine being dubbed as someone who had “predicted” the crash.

Elaine expressed discomfort with being put on a pedestal with a crystal ball — “I felt awkward because I got so much attention. A few weeks after that I made a negative comment, and the market dropped 120 points that day. The Wall Street Journal wrote that I had moved the stock market, and I was very uncomfortable. My career was going very nicely until then, and it was too much attention. It was a lot of pressure.”

Garzarelli was a partner and managing director at several major brokerage firms until 1995 when she founded her own business, Garzarelli Research, Inc.. For eleven years she had been ranked as Wall Street’s top Quantitative Analyst in Institutional Investor magazine’s poll.

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Technorati
  • Mixx
  • Pinterest
  • Google Plus
  • Reddit
  • BlinkList
  • Blogger
  • Tumblr
  • Digg

Tags: , ,

Rate This Article!
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

IMPORTANT! You need to solve the following simple math (so we know that you are a human) :-)

What is 2 + 13 ?
Please leave these two fields as-is:
CommentLuv badge

Incoming Search Terms!

monday stock market predictions, stock market crash prediction, market crash monday, stock market crash on Monday, monday stock market, monday market prediction, stock market crash predictions, Elaine Garzarelli, stock market crash monday, will market crash monday, black monday stock, 2011 market crash predictions