THE FORTUNE TELLERS
and a devastating recession that began in November 1973 and would not end until March 1975 had destroyed consumer andinvestor conﬁdence. But Yale sensed the tide had turned. Theissue mailed a few days later on Friday, October 4, one day after both the S&P 500 and Nasdaq posted their lows for theremainder of the twentieth century.In the January 1975 issue, published two days after the Dow’sintraday low of 570 and three days after its closing low of 577.60,the two headlines on the front page of
read: “TheDarkness Before the Dawn” and “Dow 800 by April 1975.”By April, the Dow had cleared 800 as Yale forecasted.Perhaps a bit too exuberantly, Yale then forecasted, “Dow2,000 by 1980!” The Dow did not hit 2,000 until January 1987for various reasons, one of which was the infamous double-dip recession of the early 1980s. Around the corner was Yale’s500 percent prediction, initially published one year later in April 1976. The January 1977
Special Report wasthe culmination of many articles Yale wrote during 1976 as heresearched super booms. It is a prescient forecast and the foun-dation of my own research into the trends—political, historical,and ﬁnancial—that cause super booms. It is a glimpse into thehistory of the information super boom, the origins of the HirschOrganization, and the discovery of the 500 percent equation.So I have reprinted sections of it here with my annotations andthoughts on similarities between 1976 and 2010. The full articleis included as Appendix B at the end of the book. Appendix A includes Yale’s portfolio recommendations from 1977 with my commentary and a quick review of each stock selection.
Smart Money—January 1977Special Report
Invitation to a Super Boom
SUPER BOOM rarely comes more than once in a generation.Unfortunately, it seems to follow a severely inﬂationary era