Yesterday’s blog entry reported on an e-mail that Academic Researcher Wade Pfau sent me on March 4, 2011. I next received an e-mail from Wade on March 10, 2011.
Wade said that he had now done research on how Valuation-Informed Indexing worked in Japan and that it showed that “Valuation-Informed Indexing worked fine in Japan as well.” He commented: “This was the big test, as valuations took a wild ride there” (Wade explained that the P/E10 level rose to nearly 100 by the start of 1990. He noted that several Bogleheads had brought up Japan in his discussions with them.
He sent me an advance copy of his paper on the Fisher and Statman research.
He asked for me to let him know the year that The Retirement Risk Evaluator was published so that he could provide citations to it in his research. He also asked whether I should be referred to as the sole creator of the calculator or as a co-creator with John Walter Russell.
He said that he had heard from the Journal of Financial Planning that it would be publishing a safe savings rate paper.
He also reported on a discouraging reaction to his maximum-withdrawal-rate research from another journal. Wade said: “The referee comments left me a bit dejected.” He explained that the editors did not object to the valuations component of the research but “they just don’t like the whole literature about 4 percent rules.” He added: “They think that William Sharpe already solved this with his 2009 paper, though I don’t know what the solution is. “