I’ve posted Entry #282 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Twelve Claims Made in Irrational Exuberance That Should Be Explored in Book-Length Examinations — Part Two.
Juicy Excerpt: “If over some interval in the first decade or so of the 21st Century the U.S. market is going to follow an uneven course down, as well it might — back, let us say, to its levels in the mid-1990s or even lower…the real losses could be comparable to the total destruction of all the schools in the country, or all the farms in the country, or possibly even all the homes in the country.” (Page 213)
The economic crisis brought on by the out-of-control bull market of the 1990s (which in turn was brought on by the relentless promotion of Buy-and-Hold strategies) has caused the formation of radical political movements on both the right (The Tea Party Movement) and the left (The Occupy Wall Street Movement). People are losing confidence in our political system because of the economic damage caused by the continued promotion of the old model for understanding how stock investing works. Yet the matter is never discussed in political debates!