What job should liquidity do in a portfolio?

Investment capital exists alongside spending, business ownership, debt and possible transactions. A liquid reserve can fund a known obligation or preserve choice under stress; its role should be explicit.

Separate time horizons, income requirements, risk capacity and tax sensitivity. Identify assets that might become difficult to sell when cash is needed. Long-term allocation and an aggressive short-term mandate do not have interchangeable objectives.

This framework explains the questions. It does not prescribe an allocation or determine suitability.