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No. of Recommendations: 3
o if both the growth and value investors are suffering, who is solvent?

people who don't use leverage, as always.

Hewitt, I love you, but this column really doesn't measure up to your usual writing. I'm not quite sure of the thesis (TA beats VI? Beta is bad), but your example (the 1995 scene) suffers from selection bias, the painted scenario is not realistic (dividends and taxes very much impact on return), most investors don't make a one time contribution and then have no money coming in and half of the point of value investing is to sell when an undervalued company reaches value.

Importantly, investors who simply buy the Vanguard 500 and then dollar cost average over time will enjoy superior returns precisely because they continued to buy when the market was falling.

I won't say anything about using 10 month moving averages beyond my personal bias against TA, even in the face of Jim Simon's returns, but I don't think this piece of writing says much about 10 month moving averages either.

I still think your book is great and relevant to the nth degree in figuring out who will be solvent (that's what the defensive value is all about). Please write more based on THAT.

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