I’ve posted Entry #267 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Take Valuations Seriously and You Will Discover Things That You Were Not Initially Even Seeking to Discover.
Juicy Excerpt: Valuation-Informed Indexing is the Sabermetrics of investing analysis. Once upon a time, we all knew that the stock market is efficient, that price changes are caused by economic developments, that investing risk is stable, the timing never works and that stock returns cannot be effectively predicted. Then this crazy Shiller fellow came along and stood everything we once thought we knew about stock investing on its head. Well, that’s in fact not quite true as of today. But we are getting there, slowly but surely. We are in the early years of a “revolution” (Shiller’s word) in our understanding of how stock investing works.