Real Name: Henry Weingarten
Case: Unusual Phenomenon
Location: Tokyo, Japan
Details: For centuries, humans have looked to the stars to help them get a glimpse into the future. In present times, people often look at their horoscopes to learn about their own futures. Some stock brokers have also used astrology and the position of the planets to pick their stocks. It is considered one of Wall Street's best kept secrets: brokers use advice from astrologers to invest millions of dollars.
One stock broker, "Jim", claims that he does not tell his clients that he is basing his stock recommendations on astrology. He does not believe that they would take this well. The astrological information, gleaned from the "heavens", is given to stock brokers from so-called "financial astrologers". One of the best known is Henry Weingarten. He has written the book "Investing by the Stars" about financial astrology.
His predictions have been proved to be uncannily accurate. He claims to have forecast the 1988 Tokyo market crash to the day, two-and-a-half years before the event. He has been right about the United States market as well. He predicted the 500-point decline on October 27, 1997. Although stock brokers were nervous about buying more stock, Henry told them to continue to buy stock because the market was about to go back up by 10:30. At exactly 10:30, all of the computer buying programs took off. At 10:35, IBM made a major buyback announcement, exactly as Henry predicted.
Henry has his own website which receives thousands of hits per week. Investors can pay an annual fee of $300 to get his newsletter. Some traders pay $3,500 per year to get personal predictions via the telephone. Henry reportedly predicted the "market top" of July 20, 1998; for two months before that, he suggested that brokers should take any opportunity to sell stocks and take their profits. For Jim, he saved his clients at least $250,000.
Astrologers like Henry claim that, just like people are born during a particular astrological sign, so too are stocks, corporations, and markets. The date of a company's incorporation or the moment a stock is first issued determines its "birth date". Astrology charts of a corporation can determine the ups and downs of its stock and fortunes. According to Henry, based on the time, place, and date, there are planetary patterns that show up when a stock goes up and down.
The usage of astrology in stocks has apparently been around for years. Reportedly, banking tycoon JP Morgan consulted astrologers before making big deals. Arch Crawford is considered one of the pioneers of financial astrology. He employs a financial model that he developed during the 1960s when he made exhaustive comparisons between the stock market and astrological phenomenon. He claims that the alignment of planets can cause sunspots which affect the moods of investors.
Although some are skeptical of Henry and Arch, they have noted that many of their predictions have been quite accurate. Arch's most famous call was shortly before "Black Monday", the crash of 1987. His prediction allowed several small companies, such as Mike Epstein, to avoid complete disaster. Arch Crawford believes that May 2000 will be a difficult time for the economy, due to a planetary alignment.
Although many are skeptical of financial astrology, others are convinced that the predictions are accurate and helpful.
Extra Notes: The case was featured as a part of the April 2, 1999 episode.
Results: Unsolved. In 2001, Henry was accused of helping bilk investors out of more than $30 million. However, he was never charged with any crime and settled a complaint out of court. To this day, he is still involved in financial astrology.
- The Astrologers Fund Inc. (Henry Weingarten's Website)
- Financial Astrology - Financial Times
- Astrologer Helped Bilk Investors, SEC Says
- Astrology Fund Sees a Selloff in the Stars
- Financial astrology: can the stars affect stocks?
- Is the Key to Beating the Market Written in the Stars?