Set forth below is the text of a comment that I recently posted to the discussion thread for one of my columns at the Value Walk site:
Rob, you are so far behind everyone else, you need a massive windfall to even put yourself in the same zip code. Shall we share the details of your retirement and investment plan? I am sure they would love to see all the details by the world renowned expert, Rob Bennett.
The market determines value, Rob. Value changes every day. It is like me telling you that my assets are really worth 65% more today because of how I interpret data. It is like selling a home. It is worth what someone today is willing to pay, not what I want it to be.
Spare me your tired lines of 35 years of research. You have little clue as to interpreting research.
The market determines value properly in the long term and improperly in the short term, Sammy. That’s what Shiller’s “revolutionary” (his word) research shows.
If you are looking at today’s market value and you want to know the true market value, you need to adjust for valuations. The P/E10 metric tells you how off the mark today’s market price is, the extent to which it is determined by investor EMOTION rather than economic realities.
Buy-and-Hold numbers are fantasy, pretend numbers. Valuation-Informed Indexing numbers are real numbers. They include the adjustments for valuations that Buy-and-Hold numbers do not include.
That’s it. That’s the entire deal here. Millions of words have been spilled and it all comes down to this — Valuation-Informed Indexers adjust for valuations and Buy-and-Holders do not. It’s so simple. One model gets the numbers right and the other does not.
These are numbers-based models. So this is important. In a numbers-based model, you must get the numbers right or you are going to cause a lot of people a lot of pain.
I always adjust for valuations. You never do. We are working at cross purposes. That’s why we are always talking past each other. You start from a different assumption than the one that I start from. So naturally we always end up in a different place.
My best wishes.