I’ve posted Entry #631 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Buy-and-Hold Doesn’t Hurt Us Only During Price Crashes.
Juicy Excerpt: The relentless promotion of price indifferent/Buy-and-Hold stock investing strategies undermines the stock market’s efforts to work that magic trick. In ordinary circumstances, stock investors would lower their stock allocation in response to price increases because price increases pull the likely long-term return on stocks down and thereby make the asset class less appealing. But most of today’s investors are reluctant to respond rationally to price increases because they have been told that market timing doesn’t work. So prices cannot correct. Eventually, they do. Eventually, they must. But stock prices can remain at crazy levels for remarkably long periods of time so long as supposed experts are reassuring investors that there is no need to engage in market timing.
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