I have to admit, Glassman does make it sound good. If I were convinced that stocks have no risk, and the Dow is going to 35,000, I'd jump right in, wouldn't you?
My problem is, I used to read his column regularly, even cut some of them out and put them in a folder when I first got interested in investing. Glassman used to say things like "high P/E ratios are a ticket to disaster," citing Marty Zweig. And he said, "over the past 20 years, the P/E ratio of the S&P index has averaged 13. Today, it's about 50 percent higher, and the clear implication is that the typical stock is vastly overpriced. As I've said in recent columns, this is a time for cautious investing, but instead of shunning equities entirely, you may want to adopt a value strategy."
That was back in 1994. I guess he's changed his mind. |
