I’ve posted Entry #244 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called We Should Ignore Shiller’s Stories and Focus on Shiller’s Number.
Juicy Excerpt: I agree with Shiller that investors are highly influenced by the stories they tell themselves about stocks. But I agree with the Buy-and-Holders that the best investing insights are quantifiable, action-orinted investing insights. P/E10 is the number that makes Shiller’s story-telling insights actionable for real-world investors. P/E10 is the number that tells the tale on us when we permit our inclination to tell stories about stocks to get dangerously out of hand.