Maintain Buying Power in the Midst of a Crisis Holding Cash is Riskier than you Think

Portofolios Should Consist of More than Equities

Ben Graham always made the point that even if you thought you had a portfolio of very cheap stocks, if the market at the time was fully priced, you should have at least 25% of your portfolio in something other than equities, such as cash or bonds. To do otherwise would be to delude yourself that your stocks, no matter how cheap they appeared to you, would be magically immune if the whole market was to correct.

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