Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: William Patalon III

Money Morning Expert Makes Noise with Market Call

By William Patalon III, Executive Editor, Money Morning • April 15, 2009

View Comments

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

William Patalon IIIWilliam Patalon III

By William Patalon III
Executive Editor
Money Morning/The Money Map Report

When Slate magazine set out to identify the market prognosticator who called what's right now the low-water mark of the bear market in U.S. stocks, the first nominee was super economist Nouriel Roubini.

Last year, Roubini predicted that "sometime" in 2009, the Dow Jones Industrial Average would hit 7,000. Not a bad call, given that the ultimate nadir of the Dow - reached March 5 - was 6,594.44. The projection scared a lot of folks.

But how great a "market call" really was it, given that the blue-chip index was already on its way down, that American International Group Inc. (AIG) was already in trouble, and that Lehman Brothers Holdings Inc. (LEHMQ) was already bankrupt?

True, it was a good call. But it wasn't a truly great one. So, no, Roubini was clearly only the runner-up in the "Call the Bear Market Bottom Sweepstakes."

So who was the winner?

Money Morning's own Martin Hutchinson - that's who.

Back in June 2008. Hutchinson - turning to his oft-employed measurement of U.S. money supply - said that U.S. corporate earnings had been artificially inflated, and said the Dow could fall all the way to 7,800.

While Roubini's estimate may have been closer to the actual bottom, Hutchinson made his call and predicted a 36% decline when the Dow was well above the 12,000 level, a point in time when most folks were calling for the market to go higher, and not lower.

It's not the first time Hutchinson made such a prescient call. And it probably won't be the last.

In April 2008, long before an implosion in a derivative security known as a "credit default swap" caused the implosion of AIG, Hutchinson warned Money Morning readers that credit default swaps were a $50 trillion problem.

He was right. Credit default swaps were a major catalyst for the collapse of AIG and for the implosion of the U.S. financial-services sector.

And he wasn't done.

In a Money Morning piece back in October, Hutchinson warned again that the Dow could be headed for a low around 7,800. While that would equate to a 40% nosedive, Hutchinson argued that it actually equated to a "safe landing," since it brought stocks into fair-value territory, perhaps opening up the investment market again.

The rally we've seen in recent weeks may well be proving Hutchinson right once again.

[Editor's Note: When it comes to banking or global economics, there's literally no one better than Money Morning Contributing Editor Martin Hutchinson - an investment banker with more than a quarter-century's worth of experience. Over the years Hutchinson has proven himself to be a market maven and he is currently offering investors smart enough to take his advice the opportunity to make $4,201 in cash by June 4.  You can get started by clicking here for details.]

News and Related Story Links:

  • The Big Money (From Slate):
    Who Was Most Right About the Dow?

  • Money Morning:
    In the Long Run, the Dow's 40% Nosedive May Actually Turn Into a Safe Landing.

  • Wikipedia:
    Nouriel Roubini.

  • Money Morning Market Forecast:
    Credit Default Swaps: A $50 Trillion Problem
    .

Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…

Claim My Free Report

William Patalon IIIWilliam Patalon III

About the Author

Browse William's articles |

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning at Money Map Press.

… Read full bio

Subscribe
Login
Notify of
guest

guest

16 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
trackback
Permanent Wealth Investment Strategy to be Revealed in Tuesday’s Free Web Summit
14 years ago

[…] was recently nominated for Business Journalist of the Year. And last week, Slate magazine honored him for correctly calling the Bear Market […]

0
Reply
trackback
Why Dividends and Gold Are the Keys to Permanent Wealth
14 years ago

[…] The other reason for buying dividend stocks is that capital gains are so damnably difficult to spot. Tell me honestly: Are you really capable of telling which kind of high-tech widget is going to take off and which one will turn out to not have the "magic" features the techno-geeks want? Me neither, and I'm a Math major, so if this stuff was comprehensible, I would be able to understand it. I had a pretty good grasp on what the Wall Street whiz-kids were doing wrong during the bubble [Editor's Note: Hutchinson was recently cited by Slate magazine for "calling" the market bubble, and forecasting the stock-market decline]. […]

0
Reply
trackback
Is the Stock Market Rally For Real?
14 years ago

[…] the Permanent Wealth Investor trading service – and who was recently cited by Slate magazine for having called the stock-market bottom. "But the economy isn't operating efficiently. We're rolling up huge deficits, […]

0
Reply
trackback
How to Take Control of a Job Interview and Make Yourself a Winning Candidate Every Time
14 years ago

[…] Money Morning Global Investing News: Money Morning Expert Makes Noise with Market Call. […]

0
Reply
trackback
Money Morning’s Hutchinson Makes the National News - Again
14 years ago

[…] Money Morning Global Investing News: Money Morning Expert Makes Noise with Market Call. […]

0
Reply
trackback
How to Use High-Yielding Stocks to Pave the Way to Double-Digit Capital Gains
14 years ago

[…] his timely market calls. Slate magazine early this year lauded Hutchinson's prescience for having correctly predicted the major correction of the U.S. stock market.  In April 2008, long before an implosion in a derivative security known as a "credit […]

0
Reply
trackback
Will Global Warming Alarmism Disappear Like the Hula-Hoop?
13 years ago

[…] firestorm, he almost perfectly predicted when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
Hidden Traps Make Bank Stocks a Bad Deal
13 years ago

[…] even issued a highly accurate prediction of when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
Why You Need to Look at these Three "Zombie-Free Zones"
13 years ago

[…] even issued a highly accurate prediction of when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
Hedge Funds Take Direct Stakes in Commodities ... Should We Be Wary?
13 years ago

[…] even issued a highly accurate prediction of when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
Which of the "Rich Four" Countries Will Default First?
13 years ago

[…] financial firestorm. Hutchinson even predicted where and when the U.S. stock market would bottom (a feat that won him substantial public […]

0
Reply
trackback
It's the World's Hottest Market - And it Isn't China
13 years ago

[…] even issued a highly accurate prediction of when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
Three Ways to Avoid Another Credit-Default-Swap Crisis
13 years ago

[…] even issued a highly accurate prediction of when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
If You're Going to Buy a House, Do it Now
13 years ago

[…] even issued a highly accurate prediction of when and where the U.S. stock market would bottom out (a feat that won him substantial public […]

0
Reply
trackback
An Open Letter to Washington: How to Fix the Deficit and End the Bush-Tax-Cuts Debate
12 years ago

[…] […]

0
Reply
trackback
When Investing in Latin America, Politics Point the Way to Profits - Money Morning
12 years ago

[…] opportunity anywhere else in the world. [Editor's Note: If you have any doubts at all about Martin Hutchinson's market calls, take a moment to consider this story. Three years ago – late October 2007, to be exact – […]

0
Reply


Latest News

September 15, 2023 • By Shah Gilani

We're Headed for a Second Banking Crisis - Here's What to Do

September 14, 2023 • By Tom Gentile

Tulips Are the Secret to Trading the Next 300% Rally in AI

September 14, 2023 • By Chris Johnson

Tulips Are Telling Me How To Trade the Next 300% rally in AI
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz