Wednesday, February 23, 2011

Contrarian Indicator of the Day: James (Dow 36000) Glassman Now Advising Caution

Too funny.
From Wikipedia:
Dow 36,000 (co-author). In this book, published in 1999, near the peak of the late 1990s stock market bubble, Glassman and his co-author declared that the stocks making up the Dow Jones Industrial Average, then around 10,000, were undervalued and that the stock prices would rise sharply, with the index reaching 36,000 within three to five years. In its introduction, Glassman and his co-author wrote that the book "will convince you of the single most important fact about stocks at the dawn of the twenty-first century: They are cheap....If you are worried about missing the market's big move upward, you will discover that it is not too late. Stocks are now in the midst of a one-time-only rise to much higher ground–to the neighborhood of 36,000 on the Dow Jones industrial average."[5] During the next three years the index declined by over 30%, bottoming at under 7,200 in the fall of 2002.[6] And nearly ten years later, the Dow reached a new multi-year low of around 6,300.
From Schaeffer's Investment Research:
Stocks have been swimming in red ink this week, so it's only natural that traders are beginning to wonder whether the bull market has run out of steam. Well, take heart in this contrarian indicator: James K. Glassman, who predicted in 1999 that the Dow would rise to 36,000, is out with a new book titled Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence....MORE