Investing Tip #146: Don’t Underestimate Liquidity Risks

When there is overall panic, liquidity dries up. Information gaps between traders widen, spread and transaction costs go up. When stocks become illiquid, their prices fall further. Your investments in illiquid stocks may suffer. If you want to learn more check out these resources: Good Vs. Bad Investments The Barbell Investment Strategy The post Investing Tip #146: Don’t Underestimate Liquidity Risks appeared first on The College Investor .