I’ve posted Entry #291 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Bull Markets Increase the Odds of Two Outcomes — Very High Return Years and Very Low Return Years.
Juicy Excerpt: There were a small number of investing analysts who advised their clients or readers to lower their stock allocations in early 1996. Imagine what their clients thought of them when a return of 19 percent was delivered for 1996. And then a return of 31 percent was delivered for 1997. And then a return of 27 percent was delivered for 1998. And then a return of 18 percent was delivered for 1999.
Investing experts need to eat too. Investing experts prefer to have their clients like them rather than hate them. Valuation-Informed Indexing works. Buy-and-Hold sells.
We all want to obtain higher returns at lower risk. Valuation-Informed Indexing always delivers higher returns at lower risk. It should be more popular than Buy-and-Hold.
But the human mind focuses on what happens in the short-term rather than what happens in the long-term. The stock market delivers feedback in a way that messes with our minds.
Anonymous says
I see you shut down the comments on ValueWalk. I guess you couldn’t handle SammySoda.
Rob says
I didn’t shut them down, Anonymous. It was either the site owner or a moderator who did that.
If it was up to me, I would handle it the way I handle things here. I would permit comments that appear to have some element of good faith behind them even if they were advanced by Goon posters. I would of course delete the crazy abusive stuff.
My sense is that no one can post a comment at this point. That means that we miss out on comments by non-Goons. That’s sad.
I understand why they did it. They probably don’t want to take the time to deal with all of the games that you Goons play. My personal view is that it’s worth dealing with the games because there is occasionally good stuff mixed in with the Goon garbage. We all need to know how the Goon mind works. We all have goonishness within us. By coming to a better understanding of what you Goons are going through. we can come to a better understanding of our own Get Rich Quick urges. I think that there are things we can learn from the Goon stuff that is not totally off the wall.
But I don’t get the sense that too many agree with me about that. I understand why they don’t want to deal with it. I get it although it makes me a little sad to know that we may be missing out on some good non-Goon comments and even in some cases some partially good Goon comments.
Thanks for stopping by.
Rob