Valuation-Informed Indexing #641: Implicit in the Idea That Market Timing Is Not Required Is the Idea That Stocks Always Offer Equal Value

I’ve posted Entry #641 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Implicit in the Idea That Market Timing Is Not Required Is the Idea That Stocks Always Offer Equal Value.

Juicy Excerpt: Implicit in a belief that market timing is not required is a belief that stocks always offer equal value. Does anyone really believe that? I don’t believe that there are very many who do. Investors get it that high stock prices diminish the value proposition of stock purchases. But few appreciate how much the value proposition is diminished when prices reach the level where they reside today because experts in this field rarely encourage them to perform the calculations they would need to perform to assess how much the value proposition is compromised when prices reach scary levels. We live in the dark re the true value of the stocks we own because we want to believe that the numbers on our portfolio statement are real despite a mountain of evidence that that is very much not the case.