[PEN-L:28083] Re: RE: Larry Elliott/Dr Doom

[Doug Henwood <dhenwood@xxxxxxxxx>]

Devine, James wrote:

>  >James Glassman... predicted that the Dow Jones industrial average
> would not stop at 10,000 but rise inexorably to 36,000.<
>
> He was interviewed on US NPR this morning. He still thinks that the
> Dow will hit 36,000, about 10 years from now. (Frankly, I think the
> Messiah will come (back?) first.) His advice, however, was mundane
> in the extreme: the "average stockholder" should diversify and hold
> for the long term. Why do we need people like him for such advice?
> can't we put the stock analysts and pundits to doing some productive
> labor instead?

That's quite a climbdown, since Glassman argued in 1999 that 36,000
was a fair price for the Dow then
<http://www.leftbusinessobserver.com/Dow36000.html>. The reason was
that stocks were dreadfully underpriced, because the risk premium was
too large - in fact, it should be close to zero.

Doug