Set forth below is the text of a comment that I recently posted to another blog entry at this site:
your lies about what you call buy and hold.
Do Buy-and-Holders urge investors to change their stock allocations in response to big valuation shifts or not, Pink?
I am 100 percent okay with calling Valuation-Informed Indexing “The New Buy-and-Hold” or “Buy-and-Hold 2.0? or whatever. I considered myself a Buy-and-Holder on the morning of May 13, 2002. Jack Bogle is a hero of mine. It has always been my dream to work WITH the Buy-and-Holders to get the mistake re long-term timing fixed and to move forward TOGETHER.
But it’s pretty darn hard to work with people who threaten to kill your wife and children, you know? I came up with a fresh name for VII not because I wanted a divorce from the Buy-and-Holders but because the Buy-and-Holders wanted a divorce from me.
Buy-and-Holders say that there is no need to practice price discipline when buying stocks. That is not a lie or even an opinion but a stone cold fact that is documented in MILLIONS of posts. And there is ZERO research indicating that long-term timing might not be required. Zero. Wade Pfau checked the entire record and found nothing.
Buy-and-Hold is a lie.
It started out as a mistake. That needs to be acknowledged in fairness.
But a mistake that isn’t fixed for 33 years after the peer-reviewed research in the field reveals it has become a lie. The idea that long-term timing isn’t required of every investor hoping to have any realistic chance whatsoever of long-term success is a LIE. It is the LIE that has brought on the biggest economic crisis in U.S. history.
The lie will fall with the next price crash. And you will be sent to prison when it falls. And I will become one of the richest men in the United States when the full impact of this ugly LIE is experienced by millions of middle-class people.
Or so says Rob Bennett, in any event.
Hang in there, my old friend.