I’ve posted Entry #341 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Word “Bubble” Applies Both to Thought Bubbles and Valuation Bubbles.
Juicy Excerpt: I’ve read several articles reporting that Hillary Clinton’s husband, a man who is widely recognized as knowing more than a thing or two about politics, advised her campaign to spend some time campaigning in Wisconsin. He was patted on the head and told that he was an old man with old ideas, the new guys had this one in the bag. They believed it was so. Inside the bubble, victory was certain. Why hear out a fellow making points that came from outside the bubble? So it is with stocks. Those who have new ideas about how stock investing works are perceived as threatening to those who have built their careers around promotion of the old ideas. Should I stop sharing my thoughts about how stock investing works because they are not popular? That argument does not compute for me. It is the unpopularity of my ideas that makes them valuable, in my assessment. They come from outside the bubble.