Valuation-Informed Indexing #656: Irrational Exuberance Is Like Deficit Spending, Only Worse

I’ve posted Entry #656 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Irrational Exuberance Is Like Deficit Spending, Only Worse.

Juicy Excerpt: Do you want to know the true value of your stock portfolio? Of course you do! You need to know the true value to be able to develop an effective plan for your financial future and to assess how well your investment strategies have been working out. But you don’t really want to know the true value. If you did, all of the web sites that report on stock developments would be sure to tell you how much you need to subtract from the official numbers to account for the effect of irrational exuberance.