A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

“I Believe That Shiller’s Nobel-Prize-Winning Research Showing that Valuations Affect Long-Term Returns Was Something New.”

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

Some of us know how stock investing works.  Unfortunately, broke market timers still haven’t figured it out.  Your assessment has a 20+ year track record of failure.

And there’s zero chance that you could ever learn anything new? All of the peer-reviewed research that we would ever need was published prior to the day the Buy-and-Hold strategy was developed?

I don’t buy it, Anonymous. I believe that Shiller’s Nobel-prize-winning research showing that valuations affect long-term returns was something new. I believe that we need to incorporate that research into our thinking. Take Buy-and-Hold and add the last 44 years of peer-reviewed research and you have Valuation-Informed Indexing.

Rob

Comments

  3. ……………you do know that this is what the whole discussion is about, right? We need to have those millions in our account by the time we turn 60. Being broke in your 60’s is what is the biggest concern.

  4. The purpose of peer-reviewed research is to help us all to build our retirement accounts as big as possible as quickly as possible.

    The fact that a good number of Buy-and-Holders are hotly opposed to the discussion of the last 44 years of peer-reviewed research is a very bad sign for Buy-and-Hold. It’s certainly not all Buy-and-Holders that feels that way, it’s about 10 percent who engage in abusive and in come cases criminal behavior. But the 90 percent of Normals have not spoken up strongly enough in opposition to the tactics that you Goons employ to suppress learning experiences.

    If Buy-and-Hold were a real thing, we never would have seen a single abusive post. I mean, come on. I don’t say that the Buy-and-Holders always knew that valuation-based market timing was of critical importance. But they certainly knew that Shiller had done something important and that we all should have been discussing the far-reaching implications of his Nobel-prize-winning research going back to the day it was published.

    I believe that we are fundamentally a good people. I believe that we will get there. I think it is just too weird to have one sets of laws that applies to everything outside of the investment advice field and an entirely different set of laws that applies in the investment advice field. We’ll see.

    Rob

  5. “ The purpose of peer-reviewed research is to help us all to build our retirement accounts as big as possible as quickly as possible.”

    My account is big. Your account is empty. Clearly I understand what the research really says and you don’t. End of story.