Set forth below is the text of a comment that a community member named “Tron” recently put to another blog entry at this site:
Well based on your response I can’t quite tell if you are being serious or doing a Colbert type act. In any event I’ll bite. Here are a few observations and questions I have.
You have an impressive ability to write volumes of repetitive nothingness.
Your entire site feels as though I am reading the text version of an infomercial to the point I am astounded that there doesn’t appear to be anything for sale here.
Any truely worthwhile content you have is completely drowned out by ridiculous hyperbole. Here are some examples of this. You state buy and hold is broken and does not work feverishly. Now if I have a car that is broken and does not work it will not start and is incapable of getting me from point A to point B. Buy and hold on the other hand has clearly afforded many individuals their desired retirement getting them from point A to point B. Perhaps you feel your VII is superior but in that case shouldn’t buy and hold simply be seen as sub-optimal not broken and never capable of working. If you lead with this notion, that buy and hold is broken and can never work, how can you expect anyone to take you seriously?
You state a buy and hold strategy is the biggest personal finance mistake in history. Really? A plan of setting aside a portion of your paycheck each month into a balanced portfolio that slowly becomes more conservative is the worst personal finance decision you can make? It is worse than spending your entire paycheck and maxing out credit cards? Again, statements such as these pretty much destroy your credibility and make it seem that you are trying to sell something.
I understand your premise, that you should scale back equities when they are overvalued and double down when they are undervalued. That could quite possibility be the least revolutionary assertion ever made. The issue is that no real mention is made of how to determine this unless it is literally buried in your fanatical ramblings. I see some mention of P/E10 as an indicator, the only indicator it seems, but no real strategy or plan. You must admit that it is significantly easier to implement a buy and hold approach than a very cryptic VII plan. I have literally scoured your website for clear instruction on how to implement VII but I can find nothing. If you are leaving it up to the individual to determine when stocks are overvalued or undervalued than that is honestly a joke.
Furthermore your blog never seems to indicate what you are actually doing so one can’t even just ape your movements. The P/E10 seems to indicate that you would be largely out of equities. So you have been sitting on the sidelines for a number of years and intend to do so until the P/E10 ratio drops significantly. Meaning you could very well be out of equities for half a decade or more? I could just sell now too and wait but having stayed invested for an additional couple of years would put me in a much better situation than you. Would you agree with this?
If you could please outline how you actually implement your VII and the return you have had so far I think that would be very beneficial. The fact that you don’t very clearly makes it seem that you have something to hide. Based on what I’ve read when asked this directly you try and talk your way out of it used car salesmen style.
Please respond directly to my questions without pulling in unnecessary conspiracy theories etc. Specifically how exactly are you implementing this VII strategy and what has been the track record thus far.