DOW 36,000: A Self-Defeating Prophecy

Krugman, Paul
December 1999
Fortune;12/6/1999, Vol. 140 Issue 11, p70
Discusses the historical risk premium of stocks. Why stocks have not been all that risky for investors with a long view; Why calculation that justify the stock market to be 100 times 1999 dividends is foolish; Why people who buy stocks based on the belief that they are not risky at all will turn the belief into a self-defeating prophecy.


Related Articles

  • Speculating Versus Investing. Swedroe, Larry // CPA Wealth Provider;Jan2006, p22 

    The article discusses the difference between investing and speculating in business enterprises. Investing is distinguished between different types of equity risk, the good risk and bad risk. The risk of an individual company is the third type of equity risk which can be easily diversified away....

  • Borrow money to invest? Now there's a thought. Chamberlin // San Diego Business Journal;02/15/99, Vol. 20 Issue 7, p37 

    Offers advice on issues related to personal investment in the United States. Use of money obtained from a home equity line of credit as investment in the stock market; Disadvantages in the use of the value of homes to speculate in the stock market; Investments in preferred stocks as a means to...

  • Speculating Versus Investing. Swedroe, Larry // Practical Accountant;Jan2006 Supplement, Vol. 39, p22 

    The article compares speculation and investing. Equities involve more risk as compared to fixed-income investments. Therefore, it is expected that equities should provide greater returns for attracting investors. The stocks of companies with small capital and value are riskier as compared to...

  • Automakers remain highly speculative investment choice. Leckey, Andrew // Journal of Business (10756124);11/9/2006, Vol. 21 Issue 23, pA13 

    The article assesses the pros and cons of United States car companies as investment choices. According to the author, the automotive industry remains the most speculative choice because it continues to lose market share to imports. Industry investment analysts claim that people buy stock in...

  • Investor or punter? Kohler, Alan // Money (Australia Edition);Nov2010, Issue 129, p80 

    The article offers tips for share buyers in Australia. It states that an investor buys something in the expectation of a return, while punters or speculators buys because they think the price will go up. It mentions that the uncertainties of investing in the stock market overall usually are not...

  • Silibubble. Orr, Deborah // Forbes Global;1/12/2004, Vol. 7 Issue 1, p140 

    Warns that investors should be cautious in investing in the U.S. semiconductor industry despite the increased sales and profit estimates of the industry as of February 2004. Competition posed by China on the U.S. industry; Exceptions to the pessimism; Suggestion for speculators.

  • Finding quality in the rubble pile. Shaw, Stuart J. // Inside Tucson Business;10/8/2007, Vol. 17 Issue 17, Special section p18 

    The article discusses precautions regarding investment in stocks and shares. It states that one should invest for the shares of companies with an established brand name and a leading position in their markets. Several examples of fluctuation in share prices along with their effects are also...

  • Speculative trade, asset prices and investment levels. Sandroni, Alvaro // Economic Theory;2003, Vol. 21 Issue 2/3, p423 

    In this paper I consider a dynamically complete market model without intrinsic uncertainty. Agents' beliefs are different, but correct in the limit. Some agents are more patient than others. I show that infinitely often share prices are low and the economy stagnates. Also, infinitely often share...

  • Copping it Sweet. Haselhurst, David // Bulletin with Newsweek;07/06/99, Vol. 117 Issue 6181, p62 

    Relates the author's experiences writing the weekly column `The Speculator,' for the magazine. Attempts by readers to get the stock tips the author gives before publication; Companies calling the author to seek promotion; Story of his experience with Ivanhoe Gold in 1984; Success of the tips in...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics