I’ve posted Podcast #139 to the “RobCasts” section of the site. It’s called Only Valuations Matter — Everything Else Is Priced In.
Say that you knew there was a terrorist attack coming. Would it be a good idea to lower your stock allocation? It would depend on the valuation level. At high valuation levels, a terrorist attack would cause a big price drop. At moderate valuations, it might not or the price drop might not be so steep. At low valuation levels, it might cause a small price increase.
John Walter Russell says
Rob,
This makes too much sense. Who will be able to refute it?
Have fun.
John Walter Russell
Rob says
And who would want to in any event?
Rob