Eight Great Opportunities for Advanced Investors
Illiquidity can be your friend.
In the last few years investors have been trained into thinking that liquidity is good and illiquidity is bad. When markets are constantly worried about a financial meltdown, investors need to be able to sell a financial asset in a matter of seconds and then move their cash to a safe haven promptly.
Illiquidity can be enormously rewarding in a contrarian asset (that is, one bought when it performs poorly with the expectation of selling it when it performs well) when: You’ve done your analysis properly and are aware of the risks; you believe that systemic collapse is unlikely; and you’re patient.