I’ve posted Entry #309 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Value Proposition of Stocks Changes By a Factor of Three As Valuations Move from Low to High Levels.
Juicy Excerpt: Please understand that it is Rob Bennett saying these things about Wade Pau’s graphic, not Wade himself. I believe that, if you asked him privately, Wade would agree with the thrust of what I am saying. We exchanged hundreds of e-mails during the 16 months that we were working together and he told me during that time that he was so excited about what he was finding in his research that he could hardly sleep at night. He once exclaimed bluntly: “Yes, Virginia — Valuation-Informed Indexing works!” But for now Wade is letting his graphic do the talking for him — that alone shows that he is a lot smarter than his old friend!