The Out of Your Rut site has posted Entry #3 in my new Beyond Buy-and-Hold column. It’s titled Stocks Are a Lot Less Risky Than You Think.
Juicy Excerpt: Indexing changes everything. The sad thing is that most indexers (including Bogle) have little idea today just how important an innovation indexing is. The availability of indexes revolutionizes our understanding of stock risk. And in an entirely positive way. The truth is, stocks are far less risky than even the most enthusiastic stock advocates today realize. For investors willing to invest in indexes and open to taking valuations into consideration when setting their stock allocations, stocks are a significantly less risky asset class than bonds.