I’ve posted Entry #146 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Two-Thirds of Investment Advisors Don’t Believe That Valuations Need to Be Considered at All.
Juicy Excerpt: Are there people who believe that valuations don’t matter? I have not met anyone willing to take this position in a public debate of the question. But to read that two-thirds of financial planners believe that it is acceptable not to give valuations any consideration at all when putting together a retirement plan tells me that there certainly are people who for all practical purposes believe that valuations don’t matter. If they mattered, you would take them into consideration when putting together a retirement plan.
So we all say that we believe that valuations matter. But for a good number of us, such statements are polite reassurances that we understand the obvious realities. We don’t really believe that valuations matter. We pretend to believe it. When it comes to taking actions based on that belief, we take things the other way.
We are confused.
I don’t see how anyone can object to this conclusion.