I’ve posted Entry #320 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Effective Financial Planning Becomes Impossible During Both Bull and Bear Markets.
Juicy Excerpt: No, you don’t have to give back the things you bought with phony bull market gains. But you wouldn’t have bought most of those things at the prices offered had you known that you were not going to be able to retain all of your bull market gains. So you made bad purchasing decisions and bad financial planning decisions. How can anyone plan effectively without knowing the true numbers that apply? And you cannot go back in time and take those choices over once the price crash teaches you the realities. So bull markets do hurt even those who cash in their gains.