I saw B's post on market valuation here and I thought he did a good job to remind people about not investing when market valuation is high. I'm here to warn about another thing - that disasters does not strike alone. Usually we're well equipped to handle one big disaster in our life, but we're seldom well equipped to handle 2 or more in quick successive hits. We talk about employing our war chest and how when the market is crashing, we'll swoop in and buy at cheap valuations. But we seldom talk about the circumstances that happens when the market crash. Usually our jobs is at stake. You wouldn't dare to invest all your war chest, even though it's meant for that purpose, because you're worried now whether your emergency cash is enough should you lose your job. The circumstances when the market crashes is very different from now, ......