Hi all, new to investing.
I'm just trying to figure out how people approach investing. Looking at past market crashes 2002, 2008 (though not frequent) and small recessions since then, are you mentally prepared to lose a significant portion of your current investments should such a crash occur?
I know people generally advise to keep emergency funds (like 6m of expenses) and to invest the remaining cash in index ETFs. But are you really mentally prepared to, in worst cases, lose even 50%-60% of everything besides that 6m of emergency funds?
Maybe I'm more risk adverse than the average investor but the daunting thought would make me only want to invest like 40% (or even less) of my possessions in the stock market and keeping way more cash than 6m emergency funds. (currently not really a fan of investing in the bond market either with such low interest rates that are rising as well).
What are your thoughts?
edit:spelling
Submitted May 14, 2018 at 08:13PM by pos_3895 https://ift.tt/2rMKo78
