 Good day, fellow investors! Now one of the most important things when investing is to sleep well, which means that you perfectly understand what can happen, what can do well, what can go wrong, and then invest accordingly in relation to your financial goals and your objectives. This is very, very important and very much overlooked by 95% of the current market participants because people don't look at what can happen in relation to the investment you own. Just a quick example, two years ago I took a full mortgage to buy a property in the Netherlands with an interest rate of 3.55%. However, my colleague that used to work at the Dutch National Bank was telling me to take a variable rate. I took a 20-year fixed rate, he was kept telling me to take a variable rate. Now two years later I would save about 5% on my mortgage payment if I would have listened to him and the interest rate has dropped so I could have now locked in a much lower interest rate. However, I'm happier the way I did it. Why? Because I sleep calmly, I sleep well. I don't have to worry about interest rate fluctuations in the next 20 years and whatever happens I will always pay the same amount per month. This makes me, of course, sleep well. And that's also something that you have to think. Whatever you do when investing you have to do it with the intention to sleep well. There are too many that are risking everything, really taking big chances not understanding what can happen. If we look just at the SAP500 it has a price to earnings ratio of 26.4 which is 80% higher than the historical median. If just talks go back to what has been their average people will lose 40%. If they go to the lows that happened for example in 1982, 1950, 1921 then you lose 80% of the portfolio. This is something crazy but this shows what can happen. Now as said in another video a crash might be very very good especially if you're younger than 40 because it will allow you to buy more at a much cheaper price and gain higher returns on what you bought. Even if temporary your portfolio would be down. However, to weather a storm, to weather a bear market you need to really think about that every investment allows you to sleep well. If you invest too much and then a recession comes and then you are forced to sell at a bad point in time and don't have the capability to buy more then you did what most people do which is buy high and sell low and that's a terrible way to invest. If you do it oppositely you buy low and sell high if you have to sell at all then you will have a better strategy. So really think how much allocation to what asset can you tolerate. If you are in long stocks which is good but see okay how much can I be long stocks so that I can sleep well. Some people that are young can have 100% in stocks and sleep well because if the stock market drops they will be very happy to buy more at a lower price and in the long term their returns will be even higher. If you are five years from retirement and you're really content on every penny you know how much you will spend in the next 20 years 25 years I wouldn't bet that I can have a little larger apartment when I retire just from the possibility that the stock market goes 20% higher. That wouldn't make me sleep very good. Something else that can happen that I always mention this is the interest rate has been falling for 45 years but if you look what happened prior to that it has been going up for 45 years from 1950s to 1982. In 1982 stocks were very very cheap price earnings ratio five to six and bonds were called certificates of confiscation and if you here look at the real return of the stock market index with or without dividends from 1960 to 1982 you can see that the return real return was zero almost for 20 years and if interest rates go higher this is something we can expect. Something like that you never know what will happen in the future so really think about how can you invest to sleep well and reach your financial goals because that's the most important thing that you reach those financial goals that you have set up for yourself. If you want to retire at 50 there is big difference if you take too much risk now to retire at 48 and then you have to retire at 60. 10 years two years it's all about risk reward don't do stupid things. Looking forward to your comments and I'll see you in the next video.