The Man Who Crashed the Market

“We do what the market tells us to do. And we never hedge. Only losers hedge.”

This week in 1981, one of the most amusing episodes in the history of the stock market took place when Joe Granville issued his dire decree. Granville had a boiler room filled with banks of phones to distribute his message of doom. His subscribers were alerted, via telephone call or answering machine message, with the following statement:

This is a Granville Early Warning. Sell everything. Market top has been reached. Go short on stocks having sharpest advances since April. Click

The Dow Jones spit up 6% overnight on this call and The Street was amazed. The mainstream media clamored to learn more about the man behind this phenomenon. What they uncovered was hilarious.

I want you to visit the following links to learn about this story because it’s highly apropos of some of the things we’re hearing and seeing now.

First, here’s my take on why no one has “signals” that can accurately, consistently time the market:

A man and his signals (TRB)

This archival news video about the aftermath of Granville’s call is f***ing awesome:

The Day Joe Granville Crashed the Market (Video) (TRB)

The chapter in my book about Granville is among the best things I’ve ever written, I think. I published it here for free:

Exclusive Excerpt: The Man Who Moved Markets (TRB)

Barry’s take here:

Be Smart. Don’t Try to Time the Market. (Bloomberg View)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web