In our last message, we launched our five-part series exploring the ongoing viability of the value premium. After enduring approximately a decade of disappointing U.S. value stock returns, even disciplined investors may be wondering whether this factor will continue to deliver its expected premium in the future.
Are your investments liquid or illiquid? When a holding is liquid, it simply means you can sell it anytime the market in which it trades is open for business, without losing your proverbial shirt in the exchange. If it’s illiquid, you cannot sell it, at least not for anything near what it’s worth.
Degrees of Liquidity