Quotes from the “The Wall Street Journal” right before the autumn 1937 crash

June 29, 1937 – Certainly the market was more active on the downside, which surprised a lot of traders who had expected otherwise.

July 1, 1937 While the Street remains in a cautious frame of mind, there are undoubtedly more possible buyers than sellers around.

Aug 7, 1937: The undertone remains steady and brokers said there is nothing important in the character of the selling.

Aug 10, 1937: While volume left much to be desired, the expectation of stronger and more active markets continues to pervade Wall Street.

Is it different this time? Hedge fund manager Kyle Bass (who became well-known after successfully predicting and benefitting from the subprime mortgage crisis by purchasing credit default swaps on subprime securities issued by various investment banks) doesn’t think so. When asked which one investment he would make for the next 10 years here is what he replied:

“Sell JPY, buy Gold, wake up ten years later and you ll be fine. “

Dafni Serdari
Market Analyst

The comment in this blog is the personal opinion of the contributors and not InterTrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. InterTrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.

Spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.

InterTrader is a trading name of InterTrader Limited which is owned and controlled by GVC Holdings PLC. InterTrader Limited is authorised and regulated by the Gibraltar Financial Services Commission and registered with the Financial Conduct Authority in the UK, ref 597312. Registered address: Suite 6, Atlantic Suites, Europort Avenue, Gibraltar.

Losses can exceed deposits