Michel Pireu Columnist

In April 1906, Jesse Livermore was heavily short Union Pacific, a market bellwether in a roaring bull market, when news came of the great San Francisco earthquake. The entire city had been levelled and the tracks of Union Pacific, which were heavily spread around the area, were ripped apart.

Despite the news of the earthquake, the entire stock market remained strong, giving up only a few points at first and then rebounding. Union Pacific stock just would not go down. Livermore’s associates urged him to cover. “The market never lies,” said the one. To which Livermore replied, “Yes, the market never lies, but it doesn’t always tell the truth on an instant, either.”..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now