Note the point I made elsewhere: that you’re likely to draw on your “cash” emergency fund in times of market downturn. (E.g., you lose your job because of layof

Note the point I made elsewhere: that you’re likely to draw on your “cash” emergency fund in times of market downturn. (E.g., you lose your job because of layoffs due to a market crash.) Having that “emergency fund” be invested in the market means you will have “buy high/sell low” events. For sure some people can afford this and just like to live dangerously, of course.