Mr. Dow 36,000 Has Good Advice for You


Howard Gold Image Howard Gold Founder & President, GoldenEgg Investing

James Glassman’s book predicted a stock run for the ages—and when his prophecy didn’t come to pass, he and many of his readers lost big. Now he’s back with a follow-up: a conservative investment guide. editor-at-large Howard R. Gold catches up with Glassman to discuss the change of heart.

There are no second acts in American lives, F. Scott Fitzgerald once mused. No one was ever more wrong.

America is the land of reinvention. Exhibit A: Steve Jobs’ triumphant return to Apple (Nasdaq: AAPL) after being fired in the 1980s. Or consider Michael Vick’s spectacular football comeback following nearly two years in federal prison.

And if you think Charlie Sheen’s got a one-way ticket to oblivion, how about Robert Downey, Jr.’s impressive return to Hollywood stardom since completing rehab a few years ago?

The investing world has its share of second and third acts, too. The latest: James K. Glassman, the co-author (with Kevin Hassett) of the notorious Dow 36,000, is back with—of all things—an investment-advice book.

Sure, that may sound like the dictionary definition of “chutzpah.” This time, however, most of his advice is actually pretty good.

It doesn’t break new ground—Glassman has a lifetime’s quota of that—but it probably won’t lose you much money, either.

That’s the point. The book, Safety Net, aims to find a balance between equities’ growth potential and the so-called stability of bonds (I’ll have more to say about that later): a classic 50-50 split between stocks and bonds.

Two Years Late and 22,000 Short
It’s quite a change—call it a 180-degree reversal—from the super-bullish Dow 36,000, briefly a cultural milestone during the boom.