Why do we need cash?

[r3vbr]

[ QUOTE ]
When the 2 big hurricanes tore through the gulf coast, a majority of credit card machines, ATM's and banks went offline. No matter where in life, cash will always be accepted.

[/ QUOTE ]

That's not correct. When governments fall, cash becomes worthless. Then it's good to have some of these: http://en.wikipedia.org/wiki/Krugerrand

[Soh]

The thing is, it'll take some time to take the cash in my portfolio out anyway.

Plus, I'm not planning to use this cash for some emergency. For some emergency cash, safe is a better place, IMO.

Soh

[Bosox]

[ QUOTE ]
you can't use a debit card or stock to buy drugs and prostitutes.

[/ QUOTE ]

who said you have to pay prostitutes?

In mutual funds, I heard that its good to have extra cash for the managers to use at their discretion, so they don't always have to sell one stock to buy another.

[Soh]

I was talking about the cash within MY portfolio, not within some mutual funds.

Soh

[Bosox]

[ QUOTE ]
I was talking about the cash within MY portfolio, not within some mutual funds.

Soh

[/ QUOTE ]

I suppose it depends how active you are in trading. If you sniff around a lot for good deals, it's definitely good to have quick cash around for a moment's trading notice, just like mutual funds. If you're a buy and hold type and young enough, it seems more EV to invest.

[Soh]

"If you're a buy and hold type and young enough..."

That's me. The recommendation fo having 5% cash came from IRA site, which means people are usually buy and hold (I think,) so I was wondering why.

Soh