#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Dublin: 9°C Thursday 25 February 2021
Advertisement

A tiny firm that saw the 1929 crash coming sees trouble for 2015

Jerome Levy — grandfather of the firm’s current chairman David Levy — saw trouble coming, and sold his stocks before the 1929 crash.

Image: Screengrab/PBS

A SMALL FIRM that predicted the market crash back in 1929 is back with an ominous message.

According to Bloomberg, the Jerome Levy Forecasting center sees a 65% chance of a US recession in 2015.

“Clearly the direction of most of the recent global economic news suggest movement toward a 2015 downturn,” said David Levy, the chairman of the Jerome Levy Forecasting Center.

Levy’s forecasts contrasts with the Wall Street consensus, which is confident growth will continue for years.

Back in 1929, Jerome Levy — grandfather of now chairman David Levy — ”didn’t like what he saw in his analysis of corporate profits” and rather impressively “sold his stocks before the October crash,” reports Bloomberg.

More recently, the firm warned that the housing bubble and proliferation of sub-prime debt would be responsible for the last downturn.

#Open journalism No news is bad news Support The Journal

Your contributions will help us continue to deliver the stories that are important to you

Support us now

This time around, David Levy is worried about 2015 because the US has significant involvement overseas where growth is slowing.

Furthermore, he’s concerned that an unusually high proportion of disposable income is currently exposed to the stock market.

To read the full Bloomberg article, click here.

Read: Ireland’s biggest hotel owner wants to buy this… and another 9 hotels, thanks

Read: Why the founder of Hailo is betting on drones and robotics

Published with permission from:

Business Insider
Business Insider is a business site with strong financial, media and tech focus.

Read next:

COMMENTS (21)