Читать книгу Financial Security For Dummies - Eric Tyson - Страница 17

When broader economic and financial crises strike, for sure bad things happen. Some people lose their jobs. Stock prices and home values generally fall. This can create opportunities for those who have cash and courage to step up and buy otherwise good investments at depressed prices.

Having a good-size cash reserve for difficult times makes sense. But how large should that reserve be? If you keep too much in cash, your investment returns will suffer. Keeping too little in cash can cause your reserves to be pinched during tough times and can leave you with little, if anything, to invest when investment prices are down.

Most people with some cash find it hard to step up and make investments while the news is filled with so much gloom. And there’s the natural tendency to worry about things getting even worse. In Part 3, I explain how to make sense of the economic and other data to determine when it may make sense to step in.