[pedrosorio]

People don’t keep EFs to maximize their expected net worth. They do it to keep worst case scenarios within reasonable bounds.

You argue keeping stocks is ideal for 2 (sure) and it doesn’t hurt 1 (assuming your net worth is significantly higher than what you’d keep as EF). Agreed.

An EF is for 3. Maximize long-term net worth in x th percentile of outcomes (where x < 10)

EDIT: “ you must really be against investing on margin while having an EF”. Yep.

[Moodles]

Ok but now we're just personally disagreeing on what x is, which as I said in my first post, is fine. But just be aware of the bias.