The Stock Market Without Tears

THE publication of Dow 36,000 has caused such a stir that it has at times seemed as if co-author James Glassman and I had written another Bell Curve. Yet Dow 36,000 merely seeks to describe why stocks are highly volatile in the short run but highly profitable in the long run. How could such a message be inflammatory?

The question of this upset is hardly new. In February 2000, Investors Business Daily ran an editorial asking why the Left was obsessed with Dow 36,000. The piece upbraided Paul Krugman and online magazine Slate for their “ludicrous” accusations that our theory contained a mathematical error, adding that “even by the loose journalistic standards of op-ed page columns, this falls short.” Confronted with the facts, Krug-man publicly backed down.

About the Author

Kevin A. Hassett

Kevin A. Hassett was the senior adviser to National Review’s Capital Matters and was the Brent R. Nicklas Distinguished Fellow in Economics at the Hoover Institution.

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THE publication of Dow 36,000 has caused such a stir that it has at times seemed as if co-author James Glassman and I had written another Bell Curve. Yet Dow 36,000 merely seeks to describe why stocks are highly volatile in the short run but highly profitable in the long run. How could such a message be inflammatory?

The question of this upset is hardly new. In February 2000, Investors Business Daily ran an editorial asking why the Left was obsessed with Dow 36,000. The piece upbraided Paul Krugman and online magazine Slate for their “ludicrous” accusations that our theory contained a mathematical error, adding that “even by the loose journalistic standards of op-ed page columns, this falls short.” Confronted with the facts, Krug-man publicly backed down.

About the Author

Kevin A. Hassett

Kevin A. Hassett was the senior adviser to National Review’s Capital Matters and was the Brent R. Nicklas Distinguished Fellow in Economics at the Hoover Institution.