The volatility in the stock market has reach epic proportions up 100 points one day, down 200 points the next. Sometimes in a week it can be 1000 points up or down. So, converting enough useful stocks to cash to survive whatever comes next seems to be a useful strategy.
A friend who is a full time investor told us to get enough into cash that we might need 2 years ago rather than to invest it.
an investment is not cash because it's value is always fluctuating. Whereas Cash can be things like Savings accounts and money market funds for dividends to go into or when you sell or buy stocks.
If the market continues to get more volatile if you don't have enough into cash you will be forced to sell at too low a price and lose a lot of money.
If you are a long term investor like me, you can survive without your investment while it makes you more money and that is a part of your strategy. But, if you don't have enough cash in liquid forms it could force you to sell at a loss or even into bankruptcy.
So, please think about what I'm saying as everyone is watching the market now.
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