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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
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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.

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