I’ve posted Entry #444 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Has Shiller Changed Anything About How Most of Us Invest Today?
Juicy Excerpt: If Shiller is right, everything that the Buy-and-Holders have ever said about stock investing is wrong. The Buy-and-Holders are smart people. But the reality is that any analysis that is done starting from an incorrect premise is going to lead to an incorrect conclusion. Shiller’s challenge to Buy-and-Hold is fundamental in nature; he refers to his ideas about how stock investing works as “revolutionary” in the subtitle to his book. Shiller did not change some things or many things, he changed everything. As a result, it is hard for people who have their financial futures riding on the validity of the Buy-and-Hold Model to give his ideas serious consideration. If they come to be persuaded that Shiller’s research is on the mark, their hopes for their own future fall apart.
feed twitter twitter facebook