I used to keep a 12 month e-fund in cash. Then it became 6. Not too long I moved it to be almost 0. Which yes, that sounds very wrong.
But the thing is, if we get to a place where my investment accounts & credit card can't cover me for several months we as a society have much bigger problems. I'd prefer to not have to eat into those, and yes if the markets crash enough I'd have fewer months buffer in there. But if the shit hits the fan enough that I can't live off of it for a while I don't believe cash will help out a whole lot either.
Granted over the last couple of months the net value of that money would have dropped less if it were cash than in my investment accounts. But that's another matter altogether.
But the thing is, if we get to a place where my investment accounts & credit card can't cover me for several months we as a society have much bigger problems. I'd prefer to not have to eat into those, and yes if the markets crash enough I'd have fewer months buffer in there. But if the shit hits the fan enough that I can't live off of it for a while I don't believe cash will help out a whole lot either.
Granted over the last couple of months the net value of that money would have dropped less if it were cash than in my investment accounts. But that's another matter altogether.