How to Beef Up a Liquid Investor Diet

Many alternative investments, whether in the area of real estate, private equity, hedge funds, infrastructure or more complex structured products, require investors to tie up their capital for periods ranging from four months to 10 years or more.

In most cases, there is no secondary market for these securities, so investors lack two elements key to the broader public capital markets: transparent pricing and liquidity.

Pricing and liquidity are tied to each other, since the accuracy of the pricing depends on how liquid the security is, but their benefits of transparency are often misunderstood. Pricing does not tell us much about the long-term viability of a security, and liquidity is seldom used and often over-priced.  Read More…


  1. I usually stick with penny stocks and sure they are more volatile but i over the years they’ve given me some great deals that no one seems to notice.

  2. Ahh so interest rates does affect market prices of all stock? I thought it had primary impact on just a few sectors but not all. Interesting.

  3. Informative post. Most people don’t understand the difference between public and private and just merely rely on when prices go up to determine what is good for them. This should be mandatory ready to understand the difference.

  4. It always comes down to diversifying your holdings and you will be fine. All these fine tuning is unnecessary (outside rebalancing).

  5. I think i need to read more investment books because i am a bit lost from what i just read. 🙁

  6. I wish it gave an example dealing with Options instead of a Mutual Fund.

  7. So can one buy private stock or must the stock be publically traded before its available? Confused.

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