Should You Raid Your Emergency Fund to Buy Stocks on the Cheap?
If you've been following stock market news, you're no doubt aware that we've officially plunged into bear market territory due to fears of COVID-19. A bear market means stock values have plummeted at least 20% from a recent high, and are likely to stay down for a period of time. That's not good news for investors who need to tap their stock portfolios for cash in the coming weeks. But for some people, it actually presents a solid buying opportunity. After all, quality stocks that were once hard to acquire are suddenly cheaper -- a lot cheaper. As such, now's actually a great time to invest some of the cash you're not using.
But what if you don't have piles of cash in the bank? Should you tap your emergency fund to capitalize on the opportunity to make money in the long run? Or leave your savings alone?
Health officials are calling for a heavy dose of social distancing to curb the spread of COVID-19. That means countless Americans may have to take time off of work, whether because it's not safe to go in or because their children's schools are closed and they therefore have no child care.
Source Fool.com
