Take all stock investors and tell me what their average cash position should be as a percentage of their total portfolio. For innes, the average ancial adviser will probably tell you that you need three to six months of cash in your emergency fund. So i think for most people, six to 12 months of living expenses, that seems extreme. But if you look at how what has happened, even in recent history, it's not extreme in the slightest.
Most investors are not as smart as they thought they were a year ago. Fortunately, they're also not as dumb as they feel today. Morgan Housel, author of the international best-selling book “The Psychology of Money” joins Motley Fool co-founder Tom Gardner on to discuss investing behavior and why it is the most fundamental piece of your investing success. They also talk about how you can think about your cash position and how to mentally prepare for down markets.
For a free copy of our investing “Starter Kit,” visit http://fool.com/starterkit and we’ll email it to you.
Stocks: NFLX, SHOP
Host: Tom Gardner Guest: Morgan Housel Producer: Ricky Mulvey Engineers: Rick Engdahl, Dan Boyd
Learn more about your ad choices. Visit megaphone.fm/adchoices