I’ve posted Entry #33 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts column. It’s called What Madison Avenue Knows That Your Favorite Investment Expert Does Not.
Juicy Excerpt: The two characteristics of every effective advertisement are: (1) it appeals to the emotions rather than to reason; and (2) it persuades through repetition rather than through logic. I argue in this column for a new approach to investing called “Valuation-Informed Indexing” that is the opposite of today’s most popular approach, Buy-and-Hold. The reason why Valuation-Informed Indexing is so much superior is because it is rooted in logic rather than in emotion. The reason why Buy-and-Hold is so much more popular is that it is rooted in emotion rather than logic.