12 years of Christmas .....
Two Lessons in Investing: Liquidity and Permanency
Lesson 1: Liquidity
Liquidity for expenses
Investment axiom: "Always invest what you can to afford to lose."
BUT, how many retail investors have discipline for this?
When chasing the Bull market, it always look silly for any extra cash to be rotting in the bank earning tiny returns. The lure of the Bull will be so strong that we will soon begin to deploy these extra cash "temporary" into the market.
No worry!
We will know how to take them back soon.
BUT, the Truth... Market can turn faster than our self-denial
The moment we have accepted the truth and overcome our self-denial. It is often too late. Big negative returns are locked once we have liquidated our investment at market low or ......