I’ve posted Entry #17 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Final Seven Rationalizations for Sticking with the Conventional Investing Advice.
Juicy Excerpt: Rationalization #17: Using Valuations to Set One’s Stock Allocation Would Have Caused One To Go with a Low Stock Allocation for the Entire Time-Period from 1996 through 2008. This is so. But this is more an argument for trying to persuade other investors to follow rational strategies than it is one justifying not following rational strategies oneself. It is the popularity of Buy-and-Hold that caused stocks to become a poor long-term value proposition for so extended a period of time. The remedy is not to ignore valuations but to work harder to see that all investors learn the realities.