Investors: The Stock Market Is Not Your Emergency Fund

·4 min read
Investors: The Stock Market Is Not Your Emergency Fund

Cash reserves were yielding under 1% for the year. Why would an emergency fund be necessary if you can just sell some shares to cover expenses? If you end up in a position to need extra cash when the market falls into a tailspin, you'll be forced to sell your shares at a discount (potentially a very steep one) and, consequently, to hinder the long-term growth of your portfolio.

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