I’ve posted Entry #151 to my weekly Valuation-Informed Indexing column at the Value Walk Site. It’s called Valuation-Informed Indexing Both Appeals to and Repels Both Liberals and Conservatives.
Juicy Excerpt: Buy-and-Hold is the product of Wall Street and Wall Street is generally viewed as conservative. And more anguish over the job losses suffered in the economic crisis comes from the liberal side of the political spectrum, suggesting that it is liberals who should favor a move to Valuation-Informed Indexing.
However, conservatives tend to be more concerned with the damage that the crisis has done to millions of small businesses. And conservatives tend to be more concerned about the ability of individuals to acquire wealth. In those respects, it is conservatives who we should expect to seek a change in how the markets operate.
Or consider the issue of income inequality.
The promotion of Buy-and-Hold strategies causes market instability. Workers living in a society in which Buy-and-Hold is popular can lose a large portion of the accumulated savings of a lifetime in a small amount of time. You might expect liberals to become upset over this aspect of the Buy-and-Hold experience.