As an index fund investor, how often do you expect to be down? How much will you be down 30% or 50%. The declines are usually triggered by a very specific event. And for me, more than the percentage draw down, i tend think about, like, how long could i go with negative returns? If you look at the s and p 500, there's a period in the 19 seventies to early 19 eighties where, adjusted for inflation, you went 15, 20 years without making any money.
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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