I’ve posted Entry #710 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Practicing Valuation-Based Market Timing Permits an Investor to Go With Higher Stock Allocations.
Juicy Excerpt: What if the valuation-informed investor is happy to expose himself to as much risk as a Buy-and-Holder? In that case, he could buy more stocks than the Buy-and-Holder. The one big negative of the stock investment class is that stocks are a high-risk asset. The research that I produced with Wade Pfau shows that investors who are open to engaging in valuation-based market timing can thereby reduce their stock investing risk by nearly 70 percent. Reducing risk by that much permits the investor to go with an allocation strategy calling for more stocks than the 30 percent/60 percent/90 percent plan that permits the valuation-informed investor to match the lifetime stock allocation of the Buy-and-Hold investor.
Wade Pfau has reported this year that VII has been a failure. We already knew that after looking at Rob Bennett’s complete retirement plan disaster.
Try dropping the abusive stuff and see what he says.
I have 16 months of emails from him in which he expressed the view over and over and over again that Valuation-Informed Indexing is the answer. Take away the extortion and he will say that again.
There is a good reason why the people of the United States have made extortion a crime. It hurts people in every serious ways. We all have a right to hear Wade’s true thoughts and the true throughs of thousands of others.
Where I’m coming from.
Rob