Elaine Garzarelli
Encyclopedia
Elaine M. Garzarelli is an American
financial analyst
.
, United States
, North America
.
Garzarelli received her undergraduate degree from the Drexel Institute of Technology in 1969. She went on to receive her doctorate from the same institution, now known as Drexel University
, in 1977.
, the stock market
crash of 1987. More accurately, her financial analysis indicated that the market was overvalued, leading her to sell about 50% of the stocks in her fund while making other hedges against a crash. The timing of her actions—Black Monday
came about a week later—led to her being dubbed as someone who had "predicted" the crash. This "call", however, is in dispute. The Wall Street Journal for example has published that, in fact, she did not tell her clients to uniformally sell; that she only told certain clients to "lighten up" select positions in select individual equities/industry groups. Garzarelli has not addressed this substantively in print or elsewhere.
Despite her success, she expressed discomfort with being put on a pedestal as a seer with a crystal ball
:
magazine's poll.
In the spring of 2003, shortly before a prolonged multi-year bull market, she predicted "a stock market stuck in a holding pattern for years".
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
financial analyst
Financial analyst
A financial analyst, securities analyst, research analyst, equity analyst, or investment analyst is a person who performs financial analysis for external or internal clients as a core part of the job.-Job:...
.
Biography
Garzarelli was born in PennsylvaniaPennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
.
Garzarelli received her undergraduate degree from the Drexel Institute of Technology in 1969. She went on to receive her doctorate from the same institution, now known as Drexel University
Drexel University
Drexel University is a private research university with the main campus located in Philadelphia, Pennsylvania, USA. It was founded in 1891 by Anthony J. Drexel, a noted financier and philanthropist. Drexel offers 70 full-time undergraduate programs and accelerated degrees...
, in 1977.
Black Monday call
While working as a stock analyst at Shearson Lehman, she became known for "predicting" Black MondayBlack Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
, the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
crash of 1987. More accurately, her financial analysis indicated that the market was overvalued, leading her to sell about 50% of the stocks in her fund while making other hedges against a crash. The timing of her actions—Black Monday
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
came about a week later—led to her being dubbed as someone who had "predicted" the crash. This "call", however, is in dispute. The Wall Street Journal for example has published that, in fact, she did not tell her clients to uniformally sell; that she only told certain clients to "lighten up" select positions in select individual equities/industry groups. Garzarelli has not addressed this substantively in print or elsewhere.
Despite her success, she expressed discomfort with being put on a pedestal as a seer with a crystal ball
Crystal ball
A crystal ball is a crystal or glass ball believed by some people to aid in the performance of clairvoyance. It is sometimes known as a shew stone...
:
"I felt awkward because I got so much attention. A few weeks after that I made a negative comment, and the market dropped 120 points that day. The Wall Street Journal wrote that I had moved the stock market, and I was very uncomfortable. My career was going very nicely until then, and it was too much attention. It was a lot of pressure."
Garzarelli Research
Garzarelli was a partner and managing director at several major brokerage firms until 1995 when she founded her own business, Garzarelli Research, Inc.. For eleven years she had been ranked as Wall Street's top Quantitative Analyst in Institutional InvestorInstitutional Investor (magazine)
Institutional Investor magazine is a monthly periodical published by Euromoney Institutional Investor. A separate international edition of the magazine was established in 1976 for readers in Europe and Asia. Capital Cities Communications purchased the magazine in 1984...
magazine's poll.
In the spring of 2003, shortly before a prolonged multi-year bull market, she predicted "a stock market stuck in a holding pattern for years".