Tag Archives: valuation-informed indexing

Liberals Came Closer to the Mark Than Conservatives With Their Explanation of the Economic Crisis

I knew the cause of the economic crisis before it happened. So did Robert Shiller. And Andrew Smithers. And John Walter Russell. And Rob Arnott. And all other Valuation-Informed Indexers. If you understand that stock valuations affect long-term returns, you understand that bull markets of the size we saw in the late 1990s always causeContinue Reading

How to Use Valuation-Informed Indexing — Part One

How to Use Valuation-Informed Indexing — Part One

I advocate Valuation-Informed Indexing. This investing strategy is the alternative to Buy-and-Hold. Buy-and-Hold is rooted in the research of University of Chicago Economics Professor Eugene Fama and assumes that overvaluation is a logical impossibility; thus, it posits that investors need not change their stock allocations in response to price changes. Valuation-Informed Indexing is rooted inContinue Reading