Is James K. Glassman right this time?Don't bet on it.
The co-author of "Dow 36,000"— which was published near the peak of the Internet bubble in 1999 and called for stocks to triple in as little as five years— is rolling out a book warning investors to protect themselves against another round of financial disasters.That's bloody timely. Hey kids, it's three years since the Great Recession started, and if you listened to me (and former McCain economic advisor Kevin Hassett) you already lost your shirt, but I'm here to tell you now: "Watch out for that market, it can get kinda tricky!"
In his new book, "Safety Net," Mr. Glassman writes the three words that are hardest for any investor or financial pundit to utter: "I was wrong." He deserves some credit for that admission.No, he doesn't deserve any credit. Two years ago, when the results of his errors were even clearer than they are today, Glassman had no regrets and made no apologies. Admitting he was wrong was probably the only way he could get published again. The dude makes Harry Dent look like Nostradamus.
Recall that in '96, Glassman predicted stocks would fall if Clinton were re-elected. One of the biggest stock market booms in history followed. Three years later, at the top of the peak, he changed course and advised everyone to jump in the market or else they'd miss one of the greatest bull runs in history. Stocks immediately began a decade-long swoon. Now, after maintaining his essential correctness throughout the Great Recession, he's ready to tell us to play it safe. Surely that's a good indicator for Wall Street fortunes.
Glassman's the worst-- perfectly wrong at every turn. Even the introduction to his new book hangs on a false quote. There is no more suitable caretaker for George W. Bush's historical legacy.
More on Glassman here and here.