Rich Toscano at Pacific Capital Associates: “It’s Great to See a Finance Journalist Who Understands that Valuations Matter. It Seems That Efficient Market Zealotry Is Rampant in the Journalism Community. So You Are Doing a Great Service.”

I have been sending e-mails to various people to let them know of my article on the silencing of Academic Researcher Wade Pfau. Set forth below are descriptions of some of the responses I have received.

1) William Cohan said: “Thank you, Rob. Will take a look.”

2) Rich Toscano at Pacific Capital Associates in San Diego, said: “Haha… that’s a funny coincidence… real estate is just a side interest for me; my “day job” is investing and I am also a big fan of Shiller’s CAPE.  (The coincidence is that there’s not very many of us!)  I’ve written articles on it somewhat regularly; here is the last (admittedly out of date) one: . I think it’s time for another!  In fact I was planning on writing an article soon to address some of the critcisms of the CAPE (it’s nice that enough people are finally paying attention to it that it is getting critics).  Some criticisms are good but predictably most come from stock touts simply misunderstanding it. Anyway, it is GREAT to see a finance journalist who understands that valuations matter!  It seems that efficent market zealotry is rampant in the journalism community (even after everything that happened last decade).  So you are doing a great service.  I just love your valuation-based return calculator.  I’ll look forward to checking out your site and blog in more detail.”

3) Edwin Hamilton said: “This is compelling but so far I have only been able to ‘talk to myself.’ Serial herd behavior by the American people — need to expose this deception!”

I traded a number of e-mails with Edwin re my efforts to get the word out. At one point, he suggested checking into whether Lindsey Lohan would be willing to co-blog on the issue. I wrote back: “I tried hooking up with Lindsey. It turns out that she’s a confirmed Buy-and-Holder. Go figure!”

4) David Clay Johnson, an investigative journalist, said: “Thanks. I will take a look at this after I finish my next book.”

5) J.D. Roth, the personal finance blogger who started the Get Rich Slowly blog, wrote (in an e-mail dated January 21, 2011, that I failed to report on at the time): “I keep thinking about ways I can write about this subject so that it makes sense. That is, I *do* agree that when the market is high, it makes less sense to blindly invest than when the market is low. But how does one determine what is high and what is low? (I know you have a formula that you like — PE10? — but that’s something experts could argue about for years, right?) I tend to think that’s where re-balancing comes in. If, in a theoretically neutral market, you’re targeting an asset allocation of, say, 50-50, and then stocks grow so that your allocation is 70-30, rebalancing should, in theory, act somewhat like value-informed investing, right? Anyhow, it’s something I’m thinking about, and not just theoretically. It has practical applications to my own portfolio! :)


  1. canyon wanderer says

    “Thanks. I will take a look at this after I finish my next book.”

    that’s a polite way of saying, ‘go away you nut.’

  2. Rob says

    I don’t think that’s so, Canyon.

    If it were so, I would still be grateful for the person saying it making the effort to be polite.

    Polite is good!

    Take care.


  3. Evidence Based Investing says

    I wonder if David Clay Johnson will take as long to write his next book as Rob “hocus” Bennett

  4. Rob says

    I don’t have any inside information to share re that one, Evidence.

    Please take good care.


  5. Rob says

    It’s a lot worse than what you suggest with those words, Evidence.

    When I put forward the famous post of May 13, 2002, I was expecting one or two days of heated debate, three at the tops. Since we were talking about the calculations of a number, my feeble human mind was not capable of imagining how it could go beyond that. Ten years later, here we are!

    Those darn humans will get you every time, my man.


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