Laszlo Birinyi, The Man Who Predicted Dot-Com Bubble, Dies At 79

Laszlo Birinyi, the mastermind behind the revolutionary money flow analysis, died at age 79 on Aug. 21 after struggling with multiple health issues, Bloomberg reported. 

His journey from a Hungarian immigrant to a top market forecaster is nothing short of inspirational.

Money Flow Analysis: A Game Changer: Birinyi's rise to prominence in the 1990s was largely attributed to his innovative money flow analysis. This method, which evaluates the likelihood of a stock's movement based on trading volumes at varying prices, has been pivotal in predicting market trends.

The essence of this analysis is to understand the conviction behind price fluctuations. For instance, if a stock's price drops but sees a surge in trading volume, it could indicate a further decline.

According to Bloomberg, Mike Holland, chairman of Holland & Co., once remarked, “Laszlo was always thoughtful... It was always interesting to listen to him.”

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Predictions That Defined A Career: Birinyi's foresight was evident when he advised selling internet shares just before the dot-com bubble burst. His acumen was again on display when he encouraged investors to buy U.S. equities as the Standard & Poor’s 500 Index hit a 12-year low in 2009.

During a tumultuous period in August 2015, he remained optimistic, predicting that stocks would recover. True to his word, the S&P 500 rallied by 13% by November that year.

A Life Of Excellence: Beyond his professional achievements, Birinyi's personal life was a testament to his character. Founding Birinyi Associates Inc. in 1989, he dedicated his life to analyzing market data and serving high-net-worth individuals.

His journey, from his birth in Hungary in 1943 to the U.S. at age seven to becoming a director at New York's Salomon Brothers Inc., showcased his relentless pursuit of excellence. Yet, amid all his accolades, what he cherished most was the simple joy of having dinner with his family every night. 

He is survived by his wife Jill Costelloe Birinyi; two daughters, Natalie and Anna; his brother and a grandson.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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