Yusra3
VIP Contributor
Investing in highly liquid assets is a great way to diversify your portfolio. The reason is simple: if you're investing in highly liquid assets, you're exposed to more opportunities than if you simply invest in more traditional assets.
It's important to note that while this may sound like a good idea, it's not always the case. Liquidity is not the same thing as safety and stability, and it can fluctuate wildly depending on many factors including the economy, geopolitical events, and many other factors.
However, there are certain assets that are considered more liquid than others due to their unique characteristics and underlying factors. This can make them an excellent place for investors to start building a portfolio or adding them after they've already started investing with other types of investments.
Whether you're a retail investor or an extreme value investor, there are eleven liquid investments you can make and hold for the long term.
1. Real estate
2. Treasury securities (bonds)
3. Cash equivalents (money market funds)
4. Gold and silver coins
5. Commodities (oil, wheat, etc.)
6. Foreign currencies: the dollar, pound sterling and euro
7. Stocks, Large cap companies (Dow Jones, NYSE, NASDAQ)
8. Mutual funds
9. Tax-free municipal bonds (such as U.S. Treasuries)
10. Certificates of deposit (CDs)
11. Foreign stocks and bonds
It's important to note that while this may sound like a good idea, it's not always the case. Liquidity is not the same thing as safety and stability, and it can fluctuate wildly depending on many factors including the economy, geopolitical events, and many other factors.
However, there are certain assets that are considered more liquid than others due to their unique characteristics and underlying factors. This can make them an excellent place for investors to start building a portfolio or adding them after they've already started investing with other types of investments.
Whether you're a retail investor or an extreme value investor, there are eleven liquid investments you can make and hold for the long term.
1. Real estate
2. Treasury securities (bonds)
3. Cash equivalents (money market funds)
4. Gold and silver coins
5. Commodities (oil, wheat, etc.)
6. Foreign currencies: the dollar, pound sterling and euro
7. Stocks, Large cap companies (Dow Jones, NYSE, NASDAQ)
8. Mutual funds
9. Tax-free municipal bonds (such as U.S. Treasuries)
10. Certificates of deposit (CDs)
11. Foreign stocks and bonds
