How liquid should investors be?
Cash, call money, fixed-term deposits :
How liquid should investors be?
From Christiane von Hardenberg
Reading time: min.
Those who have sufficient free cash during turbulent times can use it for investments. This rarely works smoothly. However, a combination of three things can help.
Every time prices fall, I resolve to hold more liquidity next time so I can buy more when others sell. And every time, the crisis hits sooner than I expected, and my liquidity is smaller than I'd like. So the question remains: Is there a way to be better prepared in such situations without sacrificing long-term returns?
Frankfurter Allgemeine Zeitung
