I’ve posted Entry #64 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called Most Stock Investors Are Gambling with Their Retirement Money.
Juicy Excerpt: We flatter ourselves when we suggest that today’s stock market is a true “market.” That’s not even close to being true. And it’s our fault. For the stock market to become a true market, we all need to start caring about price. I know how much opposition there is to this idea. I’ve been making the case for why we need to build a real stock market for nine years now and I have run into some strong headwinds.
There are places where value doesn’t matter, but the stock market isn’t one of them. You don’t worry about price in a gambling casino. You know the moment you walk in that the value proposition is poor. That’s not the point. You’re there for kicks. Gambling is an emotional thing, not an obtaining-value-for-your-money thing. Like the stock market is for most of us.