StockTwits
12-27-2010, 09:01 AM
Musings on Markets: Asset selection & Valuation in Illiquid Markets (http://abnormalreturns.com/links/236028/visit) (aswathdamodaran.blogspot.com)
by researchpuzzler about 1 hour ago
In my last post, I looked at how the asset allocation decision can be altered by differences in liquidity across asset classes, with the unsurprising conclusion that investors who desire liquidity should tilt their portfolios towards more liquid asset classes. Assuming that you have made the right asset allocation judgment, how does illiquidity affect your choices of assets within each class? In other words, if you have decided to invest 40% of your portfolio in stocks, how does illiquidity affect which stocks you buy?
see story at Abnormal Returns site...(RSS feed) (http://abnormalreturns.com/links/index?date=12/27/2010#236028)
by researchpuzzler about 1 hour ago
In my last post, I looked at how the asset allocation decision can be altered by differences in liquidity across asset classes, with the unsurprising conclusion that investors who desire liquidity should tilt their portfolios towards more liquid asset classes. Assuming that you have made the right asset allocation judgment, how does illiquidity affect your choices of assets within each class? In other words, if you have decided to invest 40% of your portfolio in stocks, how does illiquidity affect which stocks you buy?
see story at Abnormal Returns site...(RSS feed) (http://abnormalreturns.com/links/index?date=12/27/2010#236028)