I’ve posted Entry #399 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Shiller’s Ideas About Stock Investing Haven’t Caught On Because They Represent Too Big an Advance.
Juicy Excerpt: I believe that evolution instilled in human beings a strong reluctance to break with the herd. Those who were separated from the herd lost the protections that follow from traveling with a herd and were killed by predators. We are followers. We check our tentative beliefs with others and, when others approve of them, we gain confidence in them. When others react in violently negative ways to our tentative beliefs, we reconsider. We put serious effort into the project of reconfiguring our beliefs to bring them back into accord with what our fellows signal to us is acceptable.
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