“Investors should always keep at least half of their portfolio in cash.”

Simplified Meaning:

Investors are being advised to make sure a significant portion of their money is easily accessible, rather than putting it all in stocks, bonds, or other investments. Having cash on hand means they can quickly use it if needed, without having to sell other investments first, which could be at a loss if the market is down. For example, imagine you have a cookie jar at home with some money in it. If you put all your money into long-term investments, it would be like locking that money in a safe that’s hard to get into quickly. But if you keep some money in the cookie jar, you can grab it whenever you need to buy groceries or pay for an unexpected car repair. This advice helps people stay financially flexible and reduces the risk of losing money if they have to sell investments at a bad time. This approach can make managing risk and dealing with unexpected expenses much easier.