U - MANCHESTER HERALD. Wednctday. Oct. » . I W l t - BUSINESS Buaineam In Editorial: Vote Tied: Whalers thank Weeks for deadlock / page 9 ‘yes’ to put end to YES Merc futures traders resist blame CHICAGO — When Wall Street blamea program trading for conflict / page 6 Decline: Did anyone see it coming? aggravating the stock market collapse, Chicago futures traders NO Halloween: Adults go trick-or-treating / page 13 get defensive about the strategy, which is as much a staple of By John Cunniff their business as pork beliies and winter wheat. conaidered a forecaat? Hardly, eapecially whm Thomas Holt, a Westport, Conn., adviser, Tho Asaoclotod P rttt "Computers didn’t create greed," said Yra Harris, a 19-year aome adviaera then concluded that the p ^ b i l - finally was correct. Months ago he said the ity ahould be Ignored for the moment — not for trader who also sits on the Chicago Mercantile Exchange’s new NEW YORK — Did any of the fwpular market was no place for investors. He also said it all time, but for the time being. yearg ago, and maintained his position through, technology committee. "To say they were the culprit for the forecaatera foreaee the ahaky condition of the Many told audlencea why a vaat correction nosedive is silly." atock market acaffoldlng? out those years. Those who followed his advice could occur, and then auggeated they conalder probably avoided the crash; but they missed the The New York Stock Exchange has moved to limit program Yea, lota and lota of them did, but few foreaaw aqueeting out a few more dollara in the biggest bull market in decades. trading, blaming it for some of the volatility in last week’s aa rapid and deep a decline aa that which enaued. meantime. Among them; Ravi Batra, author of historic Oct. 19 plunge, when the Dow Jones Industrial average Those with poor records as advisers aren't The chairman of the New York Stock "The Great Depreaaion Of 19M.” dropped 908 points. Exchange, John Phelan, had mentioned the necessarily through. Joseph Granville lost Some adviaera, auch aa Robert Precbterof the Because program trading involves the buying and selling of poaaibility of an exploalve decline. many of his subscribers after incorrectly Elliot Wave Theory Newaletter, and Peter huge amounts of stock in rapid trades, price movements cauMd John Wright of Wright Inveatora’ Service, a forecaating a market debacle a long time ago. Eliadea, editor of Stock Market Cyclea, did warn by program trading can trigger even further program trading, Bridgeport, Conn., adviaer, had warned repeat­ No matter, he became a bull and continued in ilaurhrfitrr HrralJi of correctiona to come, but failed to aee the business. exacerbating price swings. Manchester A City nt Vitiage Charm edly that pricea were' far out of line with extent of the declinea. fundamentala, and that fundamentala, auch aa Prechter, meanwhile, will continue to be more Some forecasters will blithely ignore what price-earninga ratioa, alwaya reaaaert famoua for hia earlier forecaat of a 8,600-point they said, not even considering an apology. In Stock fall halts divestiture move themaelvea. Dow Jonea induatrial average. On Monday, the foot, some will look back over their many Thursday, Oct. 29,1987 Charlea Allmon, editor of Growth Stock Dow waa down to 1793.93 pointa, or leaa than recommendations during the year and find one JAMESBURG, N.J. — WaliStreet’splungehasforcedthestate 30 Cents Outlook, Chevy Chaae, Md., gave warninga for one-half that forecaat. to fit the occaaaion. to suspend sale of $800 million of st^ks required under New montha. Jay Schabacker of’ Mutual Fund Jersey’s South African divestiture law. Reviewing publiahed advice prior to the craah You will even find some of them involved in a Inveating, a mutual funda adviaer, warned demonatratea that many adviaera hedged their The state Investment Council made the decision Tuesday night weeka earlier that a maaaive drop waa poaaible. particularly galling pursuit, that of attempting outlooka in wordineaa, auch aa "on the other to explain to you why you were wrong, why the when meeting for the first time since stocks began to fall Oct. 16. Mark Skouaen, author of Forecaata & hand," or poaed ao many poaaibilitiea that one Roland Machold, director of the state’s Division of Investment, Penny puts in his 2 cents' worth at his own roast market did what it did and what you might now Strateglea, told readera in September that they waa certain to be right. said the pension fund lost $1.7 billion of its $10 billion stock ahould get out of atocka and long-term growth consider doing with the wreckage. Some contradict!^ their own phiioaophlea, portfolio in the 508-point crash in the Dow Jones Industrial By Andrew Yurkovsky mutual funda. convinced that if he hadn’t been “ Only in Southern New England ’’ Kenny Tedford (a Democratic ” We love you, Steve. You're our contending that aince reaaon had foreaaken the Some, in fact, will attempt to overcome their Average on Oct. 19. Herald Reporter “ I like to hear that Deputy Theae namea are only a fraction of thoae who adversity by seizing the initiative, as a once born, people would have wondered' would so many people comeout and director) told me la.st week a ■ kind of Joe DiMaggio Penny, and marketplace ita uae in forecaating waa also By the end of last week, he said, the losses had been cut to about (Police) Chief Bud Minor is here. deaerve credit. It ia a much amaller fraction well-known, self-styled economic adviser to why,” said Nathan G. Agostinelli. a show concern for losing a Penny," newspaper reporter had asked him thanks for being there,” he said. B< auapect. $700 million by a rally in the market and gains in m ortgage and Town Director Stephen T. Penny It’s nice to know that someone's in than thoae who will be taking bowa over the next presidents told a reporter after a certain event; former Republican mayor who is Mayor Barbara B. Wdnbergjoked. why he was so quiet at Board of Othera, including Howard Ruff and James bond investments. was chastised and ridiculed for town,” DiRosa said. few weeka and montha, however, aince many "A s I said six months ago ..." the president of Mandiester State Richard W. Dyer, the Demo­ Directors’ meetings. I didn’t know McCavanagh presented Penny Dinea, iaaued warninga, but auggeated that But he said the state’s stocks in companies doing business with every fault and foible during a Bank. with a citation from the General adviaera had talked of the poaaibility. buying might be considered unless certain cratic chairman of the Board of that Kenny was on the Board of When Penny was elected to the He hadn’t, of course. He had said nothing of the South Africa dropped 25 percent in value, and the sale was dinner at the Army and Navy Club Democratic Director Stephen T. Elducation, kidded Penny for what Assembly, and Meotti gave him one Can calling attention to a poaaibility be indicators were broken. sort. Directors,” Penny said. Board of Directors In 1977, he was 29 suspended temporarily so the state "does not take a beating." Wednesday night. But the criti­ Cassano said that he le a r n t early he suggested was his poor ability to He referred sarcastically to from Gov. William A. O’Neill. and the youngest person ever to be He said there is no sale planned of any of the fund’s stocks. cisms leveled at him by his in his acquaintance with Penny that Judge the chance.s of political Director Peter P. DIRosa Jr.'s F’enny also received a plaque named mayor In Manchester. But colleagues and friends were hardly the outgoing director was a master candidates. switch from the Republican to the thanking him for .service to the In spite of the passage of 10 years iil-intentioned. of the one-sided conversation. When he and Penny visited the Democratic Party. "Peter DiRosa town, Therewasalsoalighthearted and his retirement from the board, Analyst: Chrysler needs cuts anyway Brokerage goes bust In plunge In fact, the point of Wednesday’s "There probably was a two-week resolution from Town Manager White House in 1980, Dyer said. is one of my favorite Democrats, tile future for Penny remains dinner was to honor the five-term period when we didn’t speak." Penny said that President Carter and one of my favorite Republi­ Robert B. Weiss, bright. Cassano said. FALLS CHURCH, Va. — Carole L. Haynes lost her small Democrat, who will be stepping HIGHLAND PARK, Mich. (AP) and eliminate excess factory space, Cassano said. “ I didn’t want to would takethe statedConnecticut. cans. he said. Campaign politics was virtually light-truck sales of 14.8 million. Cedergren said Chrysler also suburban brokerage firm in the collapse of the stock market, but down from the Board of Directors — Chrysler Corp. would have said Chris Cedergren, analyst with interrupt him.” ‘“ Don’t worry about Connecticut, On a serious note. Democratic absent from the comments Wednes­ “ The boy mayor is still young, Luckey last week predicted 14 needs close to three aging AMC she still has her mom. after Tuesday’s election. needed to make deep cuts In its J.D. Powdr k, Associates of Wes­ About 100 people turned out for Mr. FYesident, they’re with you 100 Town Chairman Theodore R Cum­ day night. But DiRosa and Tedford and he’s going to be a part of million in 1988. assembly plants — in Kenosha, Haynes was forced to close First Potomac Securities Corp.