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. “
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