Woman not surprised

Not  surprised. The media would have us believe that the “Crash of  ’87”  happened  like  a  bolt  out  of the blue. It didn’t.  Warning signs appeared months ahead.

The  market was seriously overvalued when the mighty Dow closed at  2,709.5  on August 21, 1987. Our trustworthy VV-DJIA was at 2,184.3,  19.4%  below  the  Dow. Our  Recommendation Profile turned  unfavorable  a  week  later  when the Buys decreased to 24.0%  and  the Sells increased to 48.3%. Inflation was rising, so  Mr.  Greenspan,  newly  appointed  Head  of the Fed, raised interest  rates  twice  between  August  and  October.   As the investment  climate  continued  to  deteriorate,  we warned our readers  repeatedly  to  take  profits and put Stops on all “H” rated  stocks.   On  October  9,  we  said  that  the Dow would continue  going  down  and advised our readers to sell Low VST-Vector stocks short.

When  the  market  crashed  on Black Monday, VectorVest readers were  Not  Surprised. See  Page  A22  of  Today’s Wall Street Journal  for a very interesting review of the events leading up to Black Monday.