Set forth below is the text of a comment that I recently put to another blog entry at this site:
Community resource? Yet another misinformed comment.
I think you are wrong, Anonymous.
There are millions of people who invest in the U.S. market. Those people consider price when buying every other good and service they purchase in their daily lives. The Buy-and-Holders told them that there is some magical blue pixie dust that applies in the investing realm that turns all the usual rules on their heads. There is no need to consider price when buying stocks. It will work out somehow or other. The first 140 years of stock market history means nothing. It is all going to turn out different this time! They are so totally sure!
People have common sense. People understand on some level of consciousness that this is a crazy idea, that price must matter. But the people who promote Buy-and-Hold strategies claim to be experts. They must know what they are talking about whether it defies common sense and 33 years of peer-reviewed research or not! So lots of people listened. And when people ripped the brakes out of the car, we went to price levels never before seen in history. The only way the market could get prices back to fair-value values (which is the entire purpose of any market) was through a series of price crashes, the first of which brought on an economic crisis.
There are millions of people out of work today as a result of the Buy-and-Hold Crisis.
There are thousands upon thousands of entrepreneurs who sweated their entire lives to build wonderful businesses that help us all and who saw those businesses destroyed in the Buy-and-Hold Crisis.
And you say telling lies about how stock investing works is not a matter of huge public policy significance? I say you are wrong. We all have a stake in the survival of this country and the Buy-and-Hold Lies are in the process of destroying it. I say that we should all fight as hard as we can to protect the country we love from these “experts” who can’t be bothered to read the last 33 years of peer-reviewed research in their field.
There is a scene in “Mad Men” where the family has a picnic and at the end of it they just pick up the blanket and let all the trash fall on the grass. They walk to the car and drive away.
People did that sort of thing in those days. They weren’t evil. They didn’t know. There was a time when the effects that our actions have on the environment weren’t a concern. So lots of us didn’t bother to take the most minimal efforts to protect it.
That’s where the Buy-and-Holders stand today. They think it is all about making a buck and they tell whatever lies they need to tell to get the money out of the customers’ pockets and into their own. But that won’t work anymore following the next price crash. There are millions of middle-class people whose only hope to financing their retirements to is gain access to accurate and honest information about what the last 33 years of peer-reviewed academic research says. If the Big Shot “experts” in this field refuse to give it to them, there is one internet site that will.
The U.S. economy is a community resource. It benefits us all. The Buy-and-Hold Lies are in the process of destroying that community resource. When people lose most of their money in the price crashes that inevitably follow the promotion of Buy-and-Hold “strategies,” they can no longer buy the goods and services that must be bought for our economy to function properly.
We all have a patriotic duty to see that the internet is opened to honest posting on safe withdrawal rates and scores of other critically important investment-related topics.
My sincere take.