I’ve posted Entry #93 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s titled Why the Economic Recovery Is Doomed.
Juicy Excerpt: If we all came to accept that we caused the crisis with our bad behavior in the late 1990s, we could come to terms with what has happened and put it behind us. That’s the test. That’s what we should be looking for when we aim to assess whether a lasting economic recovery is on its way or not.
It’s not happening.
I am on the front lines. I write about how valuations affect long-term returns and so I receive lots of feedback from investors. Investors are more open to Shiller’s ideas today than they were before the crash. There has been an improvement. But most investors still do not want to hear that they caused the crash. This important and healing truth remains largely unspoken.