“Shiller Was Awarded a Nobel Prize for His Research. So His Research Must Have Showed Us Something About Stock Investing That We Did Not Know Before Shiller Published It. What Is That Something? I Have Been Asking That Question of Buy-and-Holders for 22 Years and Never Once Have I Received a Response.”

Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:

Shiller is talked about all over the internet. Just Google it.  What you don’t like is that people got tired of you lying about Shiller (and other people/things) as well as your poor behavior issues.   YOU are banned.  Shiller is not.

We disagree.

Shiller was awarded a Nobel prize for his research. So his research must have showed us something about stock investing that we did not know before Shiller published it. What is that something? I have been asking that question of Buy-and-Holders for 22 years and never once have I received a response. Buy-and-Holders don;t respond because they understand that it will be the beginning of the end for Buy-and-Hold if they do.

Shiller discredited Buy-and-Hold. Technically, he discredited the Efficient Market Theory. But it’s the same thing because the Efficient Market Theory is the only justification that the Buy-and-Holders ever offered for their loony-tunes “idea” that there might be an alternative universe 50 billions light years away in which everything works the opposite of how it had always worked on good old Planet Earth and valuation-based market timing (price discipline!) is not 100 percent required for every stock investor.

It’s no accident that the peer-reviewed research that I co-authored with Wade Pfau showed that Valuation-Informed Indexing has been soundly beating Buy-and-Hold for as far back as we have good records of stock prices. How else could it have possibly turned out? Could the exercise of price discipline ever produce poor results? I mean, come on.

Mention of Shiller’s name is not banned. But discussion of the far-reaching how-to implications of his amazing research is. The people who developed the Buy-and-Hold strategy didn’t’t have Shiller’s research available to them because it had not yet been published at the time. So they made a mistake. The best thing to do when you make a mistake is to correct it IMMEDIATELY. It’s been 43 years. We need to open every site to honest posting re the peer-reviewed research.

That’s where I’m coming from re this one, in any event.

My best wishes to you and yours, Anonymous.

Rob