You may have missed this during the week so go catch up on it now – my buddy Carl Richards (Behavior Gap) excerpted a portion of his new book for the New York Times Bucks Blog to talk about The Overnight Test, one of my very favorite psychological investing tools…
A friend of mine recommends what he calls the Overnight Test. Ask yourself what you would do if someone came in and sold all of your investments overnight. The next morning you wake up and you’re left with 100 percent cash in your account.
Here’s the test: you can repurchase the same investments at no cost. Would you build the same portfolio? If not, what changes would you make? Why aren’t you making them now?
Read the rest: