I’ve posted Entry #59 for my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Indexing Changed Everything.
Juicy Excerpt: People expect and accept volatility in index fund prices only because index funds are a type of stock investment and the earlier types all produced volatile prices. But index funds are different in a fundamental way. With index funds, you know what the return is going to be before you buy. So there is no reason why index fund prices should be volatile. As people catch on to this, index fund prices will not be volatile. Investors will not tolerate it. Why should they?