I’ve posted Entry #190 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called How I Came to Name Shiller’s Model “Valuation-Informed Indexing.”
Juicy Excerpt: I was amazed when I took a look around Planet Internet in 2002 and learned that there was not a single site that explored the far-reaching implications of Shiller’s revolutionary findings in any great depth. This was the opportunity of a lifetime! And it’s a lot of fun (and potentially very profitable!) exploring territory that has not been explored by hundreds of others before you came on the scene. So I took on the job.
Shiller has never given a name to his model. It may be that he feels that that’s too immodest a thing for a university professor to do. The reality, though, is that that one big finding (that valuations affect long-term returns) changes everything. It changes how we plan our retirements. It changes how we understand and manage risk. It changes our asset allocation strategies. When a new way of thinking about stock investing changes that much, we need a name for it.