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I would imagine there's a pretty strong correlation between job loss and a crashing stock market. I wonder how the opportunity cost of keeping an e fund in acco
by Rebelgecko 5y ago
I would imagine there's a pretty strong correlation between job loss and a crashing stock market. I wonder how the opportunity cost of keeping an e fund in accounts that won't lose principle compares to the downsides of potentially having to sell off stock after a crash.
Of course that's assuming you're able to sell your stock and transfer the funds in a timely fashion. Maybe things have changed in 2022, but I know plenty of people (especially using Robinhood as their brokerage) who had liquidity issues when trying to sell shares in 2021.
- notch656a 5y agoThey said invested, not stock market. That means bonds, precious metals / commodity ETF, mutual funds / stock market, the whole shebang. If your emergency funds are 100% stock market instead of diversified investments you're doing it wrong. If you don't trust electronic systems to stay on-line in a crash then your hedge is probably not USD but other assets, like canned goods / water filter / ammo / hard assets in your personal custody.