I’ve posted Article #2 in my series of articles prepared for the Financial Highway site. It’s called The Economy Doesn’t Drive the Stock Market, the Stock Market Drives the Economy.
Juicy Excerpt: It’s not just that we now know of a way to help investors earn far higher returns at greatly reduced risk. If the bull market of the late 1990s was the true cause of the current financial crisis, we can stop future crises by stopping future bull markets. That’s what Valuation-Informed Indexing (which teaches investors to sell stocks when prices get out of hand) is all about.
Juicy Comment: For us uninitiated – how does one determine the “fair value” of the stock market quickly? And how do you actually know that is the fair value and that the fair value can’t change?