Stock prices are still far too low

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Stock prices are still far too low is the title of an influential 1999 article[1] by Kevin A. Hassett[2] and James K. Glassman.[3] They would go on to present an extended view of the topic in their 1999 book, Dow 36,000[4].

The opinion piece stated that:

  • Investors are ignoring the old shibboleths and pricing companies like Gillette at a P/E of 64 or Microsoft at a P/E of 66. This reflects not their nuttiness but their sanity.
  • Investors today are rationally exuberant. They are bidding up the prices of stocks because stocks are a great deal. Dow 10,000 is just for starters.
  • Extensive research by Jeremy Siegel[5] of the University of Pennsylvania’s Wharton School has found that over 20 years and more, stocks are no more risky than Treasury bonds or even bills.[6]

It should be noted that in 2004 Siegel stated "Now, one thing I should make very clear, I never said that [my chart on comparative standard deviations of stocks and bonds] means stocks are safer in the long run."[7]


  1. Kevin A. Hassett, James K. Glassman, Stock Prices Are Still Far Too Low, AEI Online, March 17, 1999.
  2. Kevin Hassett, on Wikipedia
  3. James Glassman, on Wikipedia
  4. Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market, on Wikipedia
  5. Jeremy Siegel, on Wikipedia
  6. Hassett, Kevin A. and James K. Glassman (1999) Stock Prices Are Still Far Too Low
  7. Siegel, Jeremy (2004) in The Great Debate, a transcript of a debate between Zvi Bodie and Jeremy Siegel at the annual conference of the National Association of Personal Financial Advisors

External links