RIP Joe Granville
Joe Granville, whose stock market career began in 1957 in the offices of E.F. Hutton and Co., has passed away aged 90.
Joe was best known for The Granville Market Letter, which he wrote from 1963 onwards. He was a technical analyst who developed a lot of his own methods for predicting which way the US market was going to go. Usually his predictions were that it would go down.
His fame grew significantly in 1977 when he predicted the Dow would fall, and it proceeded to do so, sliding by 26 per cent in a year.
In 1981, he single-handedly moved the market 2.4 per cent in a day by advising readers to “Sell everything!” However, while Joe remained bearish for the next half decade, the market began a surge in August 1982 that took it up by 17 per cent p.a. through to 1986. After half a decade of bearing bearish, Joe turned bullish just in time for the 1987 crash. His fame declined.
He made another bearish call in 1995, but reversed his position in 1996 after the Dow rose 20 per cent, and then got a big one right, telling readers in 2000 that technology stock investors would soon be burnt.
Most recently, in January 2012, on Bloomberg TV, Joe called a 1000 point fall per quarter or a 50% (4000 point) fall over 2012, saying “my indicators have never let me down”.
Joe was part of the fabric of the US market, and added a lot of colour to Wall Street over his 90 years. May he rest in peace.
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
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