The market returns on average ten % per year, but i you lok at the data, it almost never returns 10 % per year. Big bouts of extreme gains punctuated by moments of big collapses,. That's the long term history of the stock market. Most investors right now were not as smart as they thought they were a year ago and you're as dumb as you feel to day. I think that's just the cost of admission to investing over time.
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
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