But a couple of years ago, Mr. O'Higgins shocked both Fools and the Wise by declaring that the market was overpriced and due for a major fall. Instead of stocks, he recommended investing in US Treasury bonds. Now he has put his advice into a new book, Beating the Dow with Bonds . BTDwBs reads at times like '70s survivalist literature, except that instead of advocating that we all learn how to grow our own food and spin wool, O'Higgins is advocating US Treasury bonds to protect one's investments against the coming market crash. This presents a bit of a dilemma for Fools.
Foolishness demands an open mind.
Of course, an open mind should not be so open that stuff just falls in and clutters it all up. Some judgment must be exercised. That's basically what is going on when Fools summarily dismiss market timers and doomsayers. O'Higgins's book, if nothing else, gives us a chance to reexamine our beliefs. I talked with Michael O'Higgins last week and found him charming and persuasive.