The ’90s Valuations Were Right, Just Early, Says JPM Strategist

J.P. Morgan senior economist James E. Glassman says the stock market remains cheap, and thinks that the macroeconomic picture remains bullish for stocks while the micro outlook involves some cautiousness. “The macroeconomic backdrop indicates that the wind remains at the back of the stock market,” Glassman writes in recent market commentary. “Cyclical recoveries and the above-trend growth that comes with that as the economy returns to full employment are spreading. Economic opportunities abroad are expanding. Monetary policies everywhere are highly accommodative and will stay that way until the global recovery is secure. … Even after the stock market’s recovery, traditional […]

Glassman: Choose History Over Hunches

In his latest Kiplinger’s column, former Under Secretary of State James K. Glassman says that — in spite of all of the troubling developments that have hit the economy and stock market over the past year or two — he still believes that the historical trend of the stock market producing strong long-term gains will continue. “Perhaps some profound change has occurred in the economic and social fundamentals that underlie financial investments, making history an invalid prologue. Perhaps the United States is growing weaker and can no longer compete with China. Perhaps we are following a disastrous public-policy route. … […]