DBKP: Sept 6 column about nothing

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DBKP: Sept 6 column about nothing

Postby Schroeder » 09/06/10 at 10:42:23

Seinfeld is often jested that it is a show about nothing. Well, in similar fashion, Rob's column on DBKP is about nothing. It's like eating junk food and ingesting empty calories. Except with junk food and Seinfeld you get either something tasty or entertaining. Rob doesn't even give you that. You just get, well... nothing. :D

Valuation-Informed Indexing is something new. It is better than Buy-and-Hold. A lot better. To explain how it is better, I need to list the benefits. The biggest benefit is that it shows you how to time the market, to invest heavily in stocks when the rewards of doing so are great and to avoid investing heavily in stocks when doing so will bring mostly pain.

You can[ch8217]t beat that. That[ch8217]s what it[ch8217]s all about.

But do you know what the Buy-and-Holders invariably say when I tell them how to time the market? They say: [ch8220]Oh, you can[ch8217]t time the market. If you could, that would be a free lunch. There[ch8217]s no such thing as a free lunch.[ch8221]

Actually, we don't say that. Rather, we attempt to use historical data and compare VII side-by-side with Buy-and-Hold. This is something Rob will never do. I wonder why. :roll:

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