I’ve posted Entry #237 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Why Baseball Teams Are More Open to Change Than Investing Analysts.
Juicy Excerpt: The second reason, paradoxically enough, is that baseball is just a game while investing is a serious matter. Intuitively, you would think that investing analysts would be quicker to embrace change because the price for putting forward poor investing advice is to cause your clients to suffer failed retirements. The reality is that the importance of getting it right in investing makes those who give advice reluctant to try new ideas. Change is always suspect until the new ideas have been proven right beyond any reasonable doubt. The old ways appears to be the safe ways. So investment advisors have been slow to embrace the far-reaching implications of Shiller’s revolutionary findings.