I’ve posted Entry #275 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Saving and Investing Go Together Like a Horse and Carriage.
Juicy Excerpt: We fail to seek strong value propositions with our investing dollars for the same reasons we fail to seek strong value propositions with our spending dollars. You see a car that you cannot afford today and a voice in your head tells you to put the budget aside and buy it because life is hard and you deserve nice things. You worry about your retirement and you want to reduce the worry and you are drawn to the idea of treating those Pretend Dollars as real ones because doing so creates the illusion of moving you closer to your financial independence goals.
We are flawed creatures. But Shiller is popular, his book was a best-seller. We learn over time. We advance in our understanding of things. We’re not so bad.