I’ve posted Entry #65 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called To Stabilize the Economy, We Need to Stabilize Stock Valuations.
Juicy Excerpt: The first step onto a better path is acknowledging the holes in Fama’s Efficient Market Hypothesis that were discovered by Shiller 30 years ago. It’s not economic developments that cause the sorts of insane stock prices we saw in the late 1990s. it’s the sorts of stock prices we saw in the late 1990s that cause the economic pain we are all experiencing today.