Barry Ritholtz

Much of the traditional thinking about cash is well intentioned but unrealistic. Should you have six months of living expenses in the bank for emergencies? Sure. Do you? Probably not. ”

When markets are rallying, cash in the portfolio is a drag on performance, returning about zero. ”

When it comes to investing, there is no such thing as a one-size-fits-all portfolio. ”

The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 percent. ”

Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities. ”

You want less of the annoying nonsense that interferes with your portfolios and more of the significant data that allow you to become a less distracted, more purposeful investor. ”

Getting more and more of our news from the social network is having significant repercussions for markets - and your money. ”

You have a natural tendency to want an emotionally satisfying tale - and to make investments based on that - despite times when the actual data may be telling you something different. ”

The beauty of diversification is it's about as close as you can get to a free lunch in investing. ”

If you think too-big-to-fail banks are not worthy of investment because of their impossible-to-read balance sheets, well then, don't buy them. ”