Fred C. Kelly wrote an almost weekly column for Barron’s from December 1936 to June 1937. It was well-timed.
His column began near the tail end of a four-year bull market. The stock market bottomed in June 1932 — June 8th for the Dow at 41.2. Then it took off. The next four years saw the Dow rise 337% off the bottom.
However, 1937 would end that run with a 33% loss on the Dow. The Dow hit a high for the year on March 10th, proceeded to decline 15% over the next three months, then almost recovered completely. The ’37 crash hit two months after his column ended.
Kelly’s column offered some well-timed behavioral advice that happens to still be relevant today. Continue Reading…