Alexander Lorenzo warns that volatile, illiquid markets can wipe 40% off your portfolio in a day. He draws on personal experience to show how sudden crashes destroy lives, then argues for keeping some money out of the market to protect yourself.
You have to understand that in high volatile markets with low liquidity, meaning there's not a lot of money, things get real really, really fast. Meaning you could lose 40% of your portfolio in less than 24 hours. I've seen it happen. I've experienced it in my own life. And in that moment, you have a choice to sell it at a loss, to make a big decision. But regardless of what decision you make, your life is going to be on halt. In that moment. That day is going to be wrecked. That week, maybe, maybe even that month is going to be wrecked because the money that's in the market is so meaningful to you that it literally shifts your life. Your life has shifted. Your life has shifted because you have too much money in the market. Please take some money out the market. You'll actually make more.
