Stock market randomly throws opportunities at frequent interval of times.
It’s at these moments you need to pounce on it. And cash is the crucial thing to grab an opportunity.
Market rarely waits for anyone. Once you miss an opportunity for lack of cash, it’s gone.
Hence, I always prefer having ‘at least’ 5-10% of my portfolio in cash. Irrespective of bull or bear market.
Also, a sufficient cash in portfolio gives a good night’s sleep rather than staying anxious what if market drops tomorrow…
Ask the investors of 2008 & 2020 how they felt with virtually no cash in their portfolios & seeing lifetime of buying opportunities miss in front of their eyes.
Cash gives you choices, liberty & comfort.
Cash is the king.
