I’ve posted Entry #429 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Bogle Is Wrong to Advise Bigger Allocation Shifts in Response to Age Changes Than in Response to Valuation Changes.
Juicy Excerpt: It does not make sense that Bogle is so willing to acknowledge the need for investors to adjust their stock allocations as they age while he is so reluctant to acknowledge the need for stock allocation adjustments to be made in response to big price shifts. Of the two factors, the valuation factor is the more important. It is smart for investors to change their stock allocation as they age. It is imperative that they do so in response to large changes in valuation levels.
feed twitter twitter facebook