I’ve posted Entry #111 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Is the Long-Term Average Return of 6.5 Percent Real a Lock for the Future?
Juicy Excerpt: The principles that underly the Valuation-Informed Indexing strategy provide great benefits for those who adjust the historical numbers. The benefit is that the process of making adjustments makes the investor aware of how far off current prices are from the long-term norm. When you see how far off current prices are from the norm, you might be inclined not to make as large an adjustment as you initially planned. The long-term realities pull you in the direction of acceptance of long-term realities. That’s a very good thing.