Valuations Matter

8) The eighth tenet of Valuation-Informed Indexing is that valuations matter.

It seems silly, but there really are people who don’t believe that valuations matter. They reject reality. They refuse to look at the numbers.

For those who still refuse to accept the obvious, I refer you to Professor Robert Shiller’s research in Why P/E10 from the Guidelines section.

Why PE10?

To see what knowing about valuations can mean to you, I refer you to the If You Don’t Want to Wait series of posts in the Notes section. It can mean the difference between being able to retire in comfort or not being able to retire at all.

Notes Section (08-22-2005)

Have fun.

John Walter Russell
November 6, 2005