I’ve posted Entry #22 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Low Stock Returns Need Not Hurt You As An Investor.
Juicy Excerpt: Investors seeking high returns are not required to take on high levels of risk, under the Valuation-Informed Indexing Model. So there is no penalty associated with going with a low stock allocation or even a zero stock allocation for a time. Valuation-Informed Indexers have opportunities available to them that are not available to Buy-and-Holders. Valuation-Informed Indexers are free to move their money to super-safe asset classes (TIPS, IBond and CDs) at times when stocks offer a poor value proposition.