In fact, if you think back several years, you could lose half your portfolio in
months if the stock market crashes.
Not exact matches
If you rebalance every three
months and it saves you from the worst of a
stock market crash, you'll say frequent rebalancing is best.
If the
stock market does
crash and you lose 50 % of your portfolio, your 6
month emergency fund just became a 3
month emergency fund.
Pollack notes that such clashes have become much more common in recent
months as the
stock market crash has pushed the
market capitalization of many biotechnology companies to less than the cash on hand, which creates an opportunity for investors to realize an immediate return
if the company dissolves.