I’ve posted Entry #95 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s titled We Need to Find Ways to Help Buy-and-Holders Save Face.
Juicy Excerpt: It’s not that the case for Valuation-Informed Indexing is not strong enough. It’s too strong! If Valuation-Informed Indexing only increased returns a small bit or diminished risk a small bit, the Buy-and-Holders would jump on it. Everyone wants to achieve higher returns while talking on less risk.
Valuation-Informed Indexing is too large a jump forward. It makes the Buy-and-Holders feel uneasy to acknowledge that their strategies perform so poorly in the long run. It’s embarrassing! And the higher the mountain of research supporting Valuation-Informed Indexing over Buy-and-Hold grows, the worse the Buy-and-Holders feel. And the worse the Buy-and-Holders feel, the less inclined they are to acknowledge their mistakes.