Paul Tudor Jones and 1987 crash

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billpritjr
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Paul Tudor Jones and 1987 crash

Post by billpritjr » Sun Oct 08, 2006 6:35 pm

I re-read Market Wizards for the 88th time and observed that Paul Tudor Jones claimed to have gone big T-Bonds when he and Peter Borish "saw" the coming 1987 stock market crash.

However, unless I am missing something, a check of historical T-Bond charts for 1987-1988 do not show any huge uptrends, immediately following the Oct '87 crash.

Am I missing something?

Thanks

BARLI
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Post by BARLI » Sun Oct 08, 2006 9:58 pm

you are really missing something here :wink:


take a look at a chart:

Image

Bonds rallied 10 points during next 4 days right after the day of the crash

billpritjr
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Post by billpritjr » Sun Oct 08, 2006 10:47 pm

OK good, thanks. I was unable to find that online or with my charts that I use.

I wonder how short he was also. Long T-Bonds and short SP futures maybe.

His partner, Peter Borish, "called' the crash, but anyone can buy William O'Neils books, written for the average investor, and O'Neil also saw the crash coming, almost to the day.

edward kim
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Re: Paul Tudor Jones and 1987 crash

Post by edward kim » Mon Oct 09, 2006 3:50 am

billpritjr wrote:I re-read Market Wizards for the 88th time and observed that Paul Tudor Jones claimed to have gone big T-Bonds when he and Peter Borish "saw" the coming 1987 stock market crash.

However, unless I am missing something, a check of historical T-Bond charts for 1987-1988 do not show any huge uptrends, immediately following the Oct '87 crash.

Am I missing something?

Thanks
yes.

they did an analog model to the 1929 stock market and realized a high degree of correlation.

they guessed right on the liquidity infusion which is the only thing that was different.

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