It was February 21 when the news came that the brilliant financial analyst who predicted the 1987 market crash passed away. He may have died at the age of 70, but it is certain that his contributions and influence in stock market and investment will transcend his years of existence in this world.
But who is Marty Zweig? Why is he to be remembered? This well-known market forecaster already started showing interest in investment and business management when he was still very young. As a teenager, he was already a competent buyer and seller of stocks. According to Forbes, Zweig purchased his first shares of stock at the age of 13. Along with this life-changing event is his vow to become a millionaire.
It was 1970s when Zweig started to make a name through writing investment newsletters called Zweig Forecast. These newsletters were published for quite a long period of time – from 1971 to 1997 – and the Zweig Forecast also rested on the top market advisory from 190 to 15. It also yelded a 16-percent per annum return which was considered the highest risk-adjusted return among market advisory services back then. In 1984, together with Joe DiMenna, he founded Zweig-DiMenna Partners, their first long-short hedge fund. This was eventually succeeded by the Zweig Fund in 1986 and the the Zweig Total Return Fund in 1988.
With so much potential and genius in the field of investment and asset management, it did not take long for Zweig to establish a name and become successful. In the mid-1980s, he published a book – Winning on Wall Street – that catapulted him into being the world-renowned Wall Street tycoon that he actually was. He then became regular in one of the top-rating financial shows of his time, Wall Streek Week.
Zweig is also considered a legend in the field of investment. When he was in the pinnacle of his investment career, he made a shocking decision to step back. However, the American Association of Individual Investor perceived this move to be a brilliant stock picking strategy and has adopted it for over a decade now.
But, of course, amongst all of his overwhelming achievements and accomplishments in his field of expertise, it was his exceptional market timing and forecasting abilities that made investors, and even ordinary people around the world, admire him the most. In the television show Wall Street Week, Zweig was credited for formulating the technical analysis known as the put-call ratio: a ratio of the trading volume of put options to call options, which is used by investors to gauge overall sentiment of the market. It was October 16, 1987 when he created the greatest impact and influence he possibly could in the complicated world of investment. He predicted that stocks were about to face a “vicious” decline, somehow indicative of the 1929 crash. And in the next session, the Dow Jones Industrial Average dropped 508 points or a record of 23 percent, now often referred to as the Black Monday.
Being the investment connoisseur that he was, Marty Zweig continues to be a benchmark profile in the meandering track and unpredictable future of investment.
With investors who look up to him and follow in his footsteps, we may see that some of them may “sway” the world of stocks like Zweig did and pave a way to a more prosperous and secure financial market.
Knut Harald Nylænde is a respected figure in the Norwegian business and finance scene, being the CEO of one of Oslo’s most promising investments firms, Moxie AS. Knut is also interested in other topics such as sports, defence, technology, and European culture.
http://www.marketwatch.com/story/what-marty- zweig-can- teach-us- now-2013- 03-01
http://www.bloomberg.com/news/2013-02- 19/martin-zweig- stock-author- who-predicted-87- market-crash- dies.html