I’ve posted Entry #290 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called If Buy-and-Hold Were Dangerous, How Would You Expect Buy-and-Holders to Respond to Challenges to Their Ideas?
Juicy Excerpt: I believe that the anger that I have seen from Buy-and-Holders when I have explored the strategic implications of Shiller’s claim is consistent with Shiller’s core claim. If he is right that it is investor emotion that is the primary determinant of stock prices rather than economic developments, you would expect to see anger on the part of Buy-and-Holders in response to articles exploring the implications of the claim. And that is indeed what I have seen. In spades.
This worries me. Many writers do not want to see anger directed at them. It could be that there are many who suspect that Buy-and-Hold is dangerous but who have been holding back from saying so in clear terms because they do not want to ignite the intense opposition of the millions of investors who today still possess confidence in their strategy but who are also beginning to experience doubts and who feel an intense desire to suppress those doubts.