VII #15: Seven Rationalizations for Sticking With the Conventional Investing Advice

I’ve posted Entry #15 for my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Seven Rationalizations for Sticking With the Conventional Investing Advice.

Juicy Excerpt: We have been living in denial of this reality for 30 years. Shiller’s insight puts us on the path to learning for the first time in history how stock investing really works. That’s exciting. But some news is so good that it is hard for the humans to let it in. This change is so big that it frightens us. Did we really get it so wrong before? Set forth below are descriptions of seven rationalizations for ignoring the Shiller insight that I have heard in my daily travels around the internet, followed by my explanation of why in my view they do not hold water.


  1. Rob says

    You’re in luck, Jessica. There’s actually even going to be a third column of rationalizations. I’ve been doing this long enough to have heard them all!

    I hope that all understand that I mean no offense in pointing out the rationalizations. All humans are rationalizers. It’s the way we are made. The point of the columns is to point out the rationalizations and thereby to protect us from their negative effects.


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