I’ve added Podcast #72 to the “RobCasts” section of the site. It’s called When Stock Losses Are True Losses and When They Are Not.
Losses that bring the P/E10 value back down to fair value are the give-back of gains that never possessed any economic substance. Losses that bring the P/E10 value below fair value are losses of economic substance. You can count on losses in economic being made up. You cannot count on losses of cotton candy gains being made up.