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By: Tony Wanless, Smart Money
Excerpt from The Province
November 5, 2000
The Nortel-led tech flameout on the Toronto stock
exchange may make market speculators return to
the concept of a "rainy-day fund," advisors say.
Since Nortel's stellar rise made it Canada's
most widely held stock, most Canadians were hurt
in its big dive.
Advisors hope the Nortel crash may bring people
back to earth and return to prudent money management,
which always includes an emergency fund, or rainy-day
fund.
For some time, advisors have been watching everyday
people take every cent they have -- and more --
and toss it into the stock market, often with
nothing more to go on than hope. And, they say,
usually the first money that's blown on the stock
gold rush is the emergency fund.
This personal-finance staple of years ago is
almost moribund now, but there was a time when
it was the most important part of a financial
portfolio. And now, as finances, economics and
jobs become ever more unstable, it's the time
for its revival.
There is obviously a trend towards this concept.
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