If you knew that for the next five years you would get zero returns in your index funds, would you change your approach? No, no. And i don't think i would. Part of that is because you w'uld have to ask, well, what are you going to where you goig to put the money? Your prie ous are not going to earn any money in bonds or gold or anything else like that. In those periods when the stock market's going nowhere, likethe, there's proabably not going o be that many great alternatives. If an investor in the equities markets cannot withstand five years of zero returns, they're not set up for success
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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