by Fred Fuld III
The book, The Day the Markets Roared: How a 1982 Forecast Sparked a Global Bull Market, by Dr. Henry Kaufman, provides the reader with the background of how the author predicted and sparked one of the biggest bull markets in history, and how the past can give insight into the future. The book was released this week.
If you are not familiar with Kaufman, he was a former economist at the Federal Reserve Bank of New York who later became a senior partner, managing director, chief economist, and director of research at Salomon Brothers, the most profitable investment bank in the world at the time.
The older generation should remember him as a frequent guest on Wall Street Week with Louis Rukeyser.
The book goes into great detail about the events leading up to the beginning of the 1982 bull market and what happened afterwards. The Day the Markets Roared discusses the background of how Kaufman went from bearish to bullish.
At times, he received much criticism and threats for his opinions. These included physical threats, which even involved the FBI. My favorite chapter was Chapter 6 – Critics, Threats, and Humor, where he covers the extensive criticism he received from the press and even a death threat.
Probably the most important chapter is Chapter 10 – New Realities, which is a fascinating and unique analysis of the present day economy. Kaufman goes into detail about how COVID-19 has affected businesses, individuals, and state and local governments in the United States.
He also emphasizes how overall credit quality has been affected. Did you know that today, only two business corporations have a triple-A rating versus 61 in the 1980s?
Plus, there is extensive information on the past and present moves by the Federal Reserve Board.
Kaufman has a strong track record, and he has intriguing opinions about where the American economy stands now and where it is headed.
Therefore, I highly recommend that you get The Day the Markets Roared as it was released this week. It just might save your portfolio.
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