I’ve posted Entry #59 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called All Studies That Support Buy-and-Hold Are Analytically Invalid.
Juicy Excerpt: This is true of every study that has been done under the Buy-and-Hold model. All of the studies really say what the Buy-and-Holders say they say. But they are all set up in the way that Jacob’s test was set up, that is, without valuation adjustments. In the eyes of Valuation-Informed Indexers, every study that has ever been performed under the Buy-and-Hold model gets all the numbers wildly wrong. We believe that valuations are the most important factor. Any study that ignores the most important factor must get the numbers wildly wrong.