I’ve posted Entry #34 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called I Favor Market Timing — No Apologies.
Juicy Excerpt: Larry said: “What you have done is beyond awesome.” He said: “The P/E10 tool could drastically change how the entire investing industry operates and measures risks.” He said: “I believe this tool, combined with quality macro-economic analysis, will change the history of investing in this country.”
So Larry and I are partners. We are working together to spread the word.
No. That last part isn’t true.
Larry got cold feet. As excited as he was about the positive changes that promotion of Valuation-Informed Indexing could bring to our world, there is one element of this strategy that he just couldn’t accept: It involves a form of market timing.
Larry said: “The key is explaining that Valuation-Informed Indexing is a tool of asset allocation, not market timing.” He said: “Timing is cast in such a negative light by the press and this is reinforced by most planners.” He said: “I can’t visualize large institutional investors telling their clients that they are engaged in market timing.”
Note: Please check out the Carnival of Passive Investing #4. My article titled “The Market Is Backwards-Looking” is included!