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:
You are just using talking lines and zero facts. We look at results to determine what is true. We can use your example as a complete and total failure, while the actual documented return numbers for buy, hold and rebalance has just crushed you and your tired lines.
If your plan worked, people would follow you in droves. But it didn’t work out that way.
All you have right now is a fantasy that someday it will turn around for you and all your detractors will lose their money.
As I have said time and again, I am happy to compare my numbers to your numbers any time. Let the readers decide.
Did people follow the critics of Bernie Madoff in the days before his con was exposed, Sammy?
They didn’t. The investors in his fund called him “Saint Bernie” in those days. Because they were up. Temporarily.
People LOVE Ponzi schemes. People LOVE Get Rich Quick schemes. Otherwise, why would they fall for them?
It’s a human weakness, Sammy. We all have a Get Rich Quick urge residing within us. The Buy-and-Hold Model exploits our Get Rich Quick urge to the greatest possible extent for the purpose of taking money out of our pockets and putting it into the pockets of the Wall Street Con Men. Valuation-Informed Indexing EXPOSES the dangers of following a Buy-and-Hold strategy by pointing to the findings of the past 35 years of peer-reviewed research.
The peer-reviewed research is our friend in our effort to keep our Get Rich Quick urge in check. Valuation-Informed Indexing is the first research-backed investing strategy designed for HUMANS. Humans have emotions. We need to protect ourselves from the emotion-based claims of those who claim to be experts in investing but who really are only experts in the marketing gimmicks used to separate us from our life savings.