|THE FOUR GREATEST CALLS IN STOCK MARKET HISTORY –|
Bull market tops tend to be long and drawn out with first one group, then the next group fading away.
Bear market bottoms, on the other hand, tend to be much more decisive. Buy a cross-section of stocks at or near a bear market bottom, and most probably all your selections will move higher as a unit. In other words, it’s much more satisfactory to buy a selection of stocks off a bear market bottom than it is to sell a portfolio of stocks off a bull market top.
I’m presenting four most interesting calls of major, and I mean MAJOR, bear market bottoms. In each case the situation was frightening, stocks had declined for years, investors had lost fortunes and Wall Street was in a state of fear and despair.
Yet, amid the pain and destruction, the stock market was giving off signals that the worst was over, and that a new primary bull market was about to be born.
I blushingly include my own late-1974 call, a turn-of-the-tide call because I truly believe that it truly was a great call. At any rate, you
be the judge. Like the other three “new bull market” calls, my 1974 call was a “cry in the wilderness.” As I remember, literally nobody else was bullish in late-1974.
I hope that these four reports, never before seen together, will serve as valuable studies for future investors and students of the stock market. I also hope that these four reports will serve to convince investors that the Dow Theory is the most basic and valuable of all market studies.
First came the Dow Theory – then came everything else.
July 27, 2003.