To be a good investor, you need to have perspective about what can go wrong with your portfolio and how severe this will be. Too many people have severe recency biases that prevent them from having broad and realistic outlooks - they think the market will keep going up and ignore the many times in modern finance and investing that catastrophic losses occurred (let alone losses that occurred pre-modern era). This episode will give you a very brief intro into the idea of stress testing your portfolio along with some basic concepts you'll need to know to do it effectively.