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Also, businesses are becoming much more efficient and the chance of undergoing devastating turn-arounds in a recession are much less. The tax environment is more generous, foreign threats have ceased dramatically, and the government management has vastly improved.
The bottom line is that the risk of investing stocks is much less than it ever has been before. The level of the risk premium is heading towards zero, while currently holding at 3%. That 3% is much better than the historical average of 7%.
James K. Glassman and Kevin A Hassett, authors of the book, "Dow 36,000," claim that the prediction of the Dow reaching 36,000 is not out of the realm of possibilities...
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