If their expected holding period in a stock can be as long as ten years, or even forever, short-term drops that are corrected in a few days, weeks, or months simply don’t matter. Many analysts seek models that explain patterns in the markets so that an investor can select the right asset classes. To identify […]
However, large assets such as property, plant, and equipment are not as easily converted to cash. For example, your checking account is liquid, but if you owned land and needed to sell it, it may take weeks or months to liquidate it, making it less liquid. Financial liquidity impacts individuals, companies, and financial markets. As each group attempts to […]
Of course, many are paying off college, mortgages, and other debts or are otherwise too fragile financially to have a portfolio of stocks or other assets. First, the market drives funding for technological advances like the smartphones in our pockets or the medications we take, which require many billions of dollars for research and development. […]
