I’ve posted Entry #64 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called What Does It Mean to Be “Fully Invested”?
Juicy Excerpt: Arends is saying that investors should not be fully invested when stock prices rise to insanely dangerous levels. What he means, of course, is that investors should not be fully invested in stocks at such times. Why doesn’t he say that? Why does he use words that suggest that it is only when we are invested in stocks that we are invested at all?
That’s what the Buy-and-Hold Model encourages us to think.