In 1999, James Glassman and Kevin Hassett published a book called “Dow 36,000.” At the time, the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a potential substitute for the book title?
The correct answer and explanation is :
Correct Answer: Dow Triples
Explanation:
The book “Dow 36,000” by James Glassman and Kevin Hassett, published in 1999, presented a bold and controversial prediction that the Dow Jones Industrial Average (DJIA) would soon rise to 36,000. At that time, the DJIA was hovering just under 12,000. The authors argued that stock prices were undervalued based on their analysis of equity risk premiums. Their central thesis was that the market had irrationally overestimated the risks associated with equities compared to bonds, and as investors began to recognize the relatively low risk of stocks, prices would soar to reflect their “true value.”
Given that the DJIA was under 12,000 and the authors were projecting it to rise to 36,000, the number 36,000 represents a tripling of the index’s value from its then-current level. Therefore, the phrase “Dow Triples” serves as a logical and concise substitute for the book’s title, capturing the core idea of the prediction.
This substitute not only conveys the quantitative magnitude of the forecast but also succinctly communicates the optimistic and attention-grabbing nature of the authors’ argument. It implies a threefold increase in stock market value, aligning perfectly with the book’s thesis without being overly specific. Moreover, using “Dow Triples” as a title could potentially appeal to a broader audience by highlighting the dramatic growth implied by the authors, without anchoring the prediction to a specific number, which can become dated or proven wrong with time—as happened when the market declined sharply after the book’s publication due to the dot-com bubble burst.
In retrospect, while the Dow did eventually reach 36,000 in late 2021—over 20 years later—the short-term accuracy of the prediction was flawed. Nonetheless, the substitute title “Dow Triples” effectively conveys the magnitude and ambition of the book’s message.