Blather, rinse, repeat

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In the late 1990’s CNBC money maven James Glassman and a co-author loudly proclaimed everything about the economy was SO awesome the Dow-Jones would be hitting 36,000 by the time George W. Bush eliminated the deficit for good and ended terrorism within the first few months of his term, if I recall correctly.

Missed it by that <—————————–

But like any conservative or corporate apologist there is no amount of being wrong that can keep them from their six and seven-figure gigs while asking for people in the five-figures to be fired. Less than two-years ago, Glassman announced he was wrong then and would apparently always be wrong forever into the future.

Slowly and reluctantly, after three decades writing about finance, I have come to the conclusion that because the world has changed, investment strategy must change with it. The old rulebook, which served us so well for nearly a century, needs revising. The rush of recent bolts from the blue – the attacks of 9/11, the BP oil blowout, the “flash crash” that sent the Dow tumbling 1,000 points in minutes and the unprecedented collapse of U.S. home values – is no fluke.

And now two years later, FLUKE YOU!

Today, the far edge of that time frame is clearly in reach. From its low of 6,547 on March 9, 2009, the Dow has risen 117 percent. Another 117 percent in four years would put it at 31,022, just 16 percentage points shy of the magic number. … How fast can the U.S. grow? Four percent is attainable, but I’d settle for 3 percent. Get there quickly, and we’ll get to Dow 36,000 quickly, too.

What kind of job can a guy get when he’s always wrong anyhow?

James K. Glassman is executive director of the George W. Bush Institute.


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