"The Importance of Cash and Bubble Investing Tips"

The collapse of Silicon Valley Bank provides a valuable lesson for investors, according to financial planner Lazetta Rainey Braxton. She advises clients to maintain a six-month "cash cushion" to avoid being forced to sell investments at the wrong time. Without liquidity, SVB couldn't "absorb the shock of the cash run," and had to sell its assets at a steep loss. A cash cushion may also provide more options for tackling financial emergencies and offer more flexibility to pivot.