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At the heart of Glassman and Hassett's argument is the idea that stocks have been undervalued for decades and that, for the next few years, investors can expect a dramatic one-time upward adjustment in stock prices. Why? While Wall Street has focused on valuation measures such as P/E ratios, it has virtually ignored how stocks can work as cash engines (the good ones, at least). The authors cite example after example of the growth in dividend income for stocks and how it has consistently beaten the annual payouts of long-term Treasury bonds. One example they cite is Exxon, which you could have bought in 1977 for about $6 when it was paying a dividend of 37 cents, or about 6 percent a share. Twenty years later, the dividend had grown to $1.63 or 27 percent of your initial $6 investment. Compare two $1,000 investments over 20 years in Exxon and 7.5 percent Treasury bonds: payments from the T-bonds would amount to $1,500; the Exxon dividends would add up to $3,585--not to mention that shares in Exxon went from $6 to $61 during that same period. To get to their target of 36,000, the authors project dividend growth of the 30 stocks that make up the Dow and apply a valuation measure that they call PRP ("perfectly reasonable price"). Many will dismiss this kind of thinking as wishful, but they're probably the same Chicken Littles who have been calling the market overpriced for years (think back to January 1993, when the Dow was hovering around 3,300).
In addition to making their case for undervalued stocks, the authors toss off some good investment advice about stock picking, portfolio allocation, and buying mutual funds, and they go to great pains not to bulldoze readers with investing and economic jargon. As you might expect, Glassman, an investing columnist for the Washington Post, and Hassett, a former senior economist with the Federal Reserve, are firmly in the buy-and-hold camp, and make the case for working with a full-service broker as a check against churning, something that's all too easy to do when trading over the Internet. This book is sure to rile some, but no matter where you think stock prices are headed, Dow 36,000 is a provocative read that belongs on the bookshelf of any thoughtful investor. Who knows? We may come to think of these guys as value investors on steroids. --Harry C. Edwards --This text refers to an out of print or unavailable edition of this title.
Do you believe in free markets? The used book market values this book at $.01. There are 103 hardback copies available at that price. Read morePublished 7 months ago by Philip Jones
Old book of no consequence. In ten years the predictions have not come true.Published 13 months ago by Flamethrower
I had a BILLION dollars and invested in companies as discussed in this book and later became a millionaire. This book helped me achieve that. Read morePublished on June 5, 2013 by hardcore
They say that laughter is the best medicine. If so, then "Dow 36,000" is the perfect elixir for every ailment under the sun. Read morePublished on May 28, 2013 by Doug Erlandson
So 13 years after first publishing in March 2013, the author is saying we're going back to 36,000 in 10 years! Everyone buy this book cause he can't be wrong a second time. Read morePublished on March 8, 2013 by Matthew Rogers
If you enter the term kevin hassett's worlds worst economist into a search enginge it will bring up links to an article of how the people of a certain politician think this Kevin... Read morePublished on October 28, 2012 by Jim
Too bad you can't give negative stars! These guys are NOT economists, they are hacks. The don't work at regular colleges, publish in peer reviewed journals, or even do math. Read morePublished on April 12, 2012 by hurls
This book was great. After reading it, I decided to put all my retirement money into Washington Mutual stock. That was based off advice that my newly-hired Lehman Bros. Read morePublished on August 8, 2011 by Manoj Khiani
This social "science" masterpiece should be required reading for any student in economics or the other social "sciences". Co-authored by social "scientist" Kevin A. Read morePublished on March 15, 2011 by RisingSun