A theory that the current methods of valuing stock are wrong and that the true value of the Dow Jones Industrial Average
is still undervalued, and is moving towards 36000. Proponents of this theory (James Glassman and Kevin Hassett) decry the use of the P/E ratio
as outdated and that the current bull market
is not in fact a mass delusion
a la tulipmania
. Detractors suggest that Glassman and Hassett are math-impaired wishful thinkers who are trying to rationalize the current bull market
More information: "Dow 36,000 - The right price for stocks, a new theory" by James K. Glassmand and Kevin A. Hassett, in the Atlantic Monthly, September 1999.