I’ve posted Entry #181 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s titled Eight Core Differences Between Buy-and-Hold and Valuation-Informed Indexing.
Juicy Excerpt: Buy-and-Holders give lip service to the idea that valuations matter. But they never consider the effect of valuations when giving investment advice. Their safe withdrawal rate studies contain no valuations adjustments. They recommend the same stock allocations at all price levels. They form judgments about how risky an investing class stocks are that suggest that stock investing risk is a stable thing rather than a variable thing (dependent on the valuation level).