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Old 01-16-2018, 09:16 AM
 
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Quote:
Originally Posted by whogo View Post
My liquid assets are almost entirely in stocks.
Stocks are not liquid assets. They might seem that way right now (just push a button on your online broker's web page and your sell order is filled right away), but in a market crisis, when the circuit breakers kick in and markets are closed, your liquid assets won't be liquid. Plus stocks are only "liquid" 8 hours a day. A dollar is worth a dollar 24 hours a day. You can't buy 10 gallons of gas at midnight with stocks.
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Old 01-16-2018, 09:24 AM
 
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Quote:
Originally Posted by Elliott_CA View Post
Stocks are not liquid assets. They might seem that way right now (just push a button on your online broker's web page and your sell order is filled right away), but in a market crisis, when the circuit breakers kick in and markets are closed, your liquid assets won't be liquid. Plus stocks are only "liquid" 8 hours a day. A dollar is worth a dollar 24 hours a day. You can't buy 10 gallons of gas at midnight with stocks.
Stocks are typically liquid, meaning you can access that value in USD rather quickly.
Land and other RE typically not liquid, as they might take a month or year to sell, settle and cash out.

But sure there can be times that you lose with stocks.

I have seen credit cards linked to stock/asset accounts. And those should work very close to cash, unless the grid goes down.
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Old 01-16-2018, 10:38 AM
 
Location: Aurora Denveralis
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Quote:
Originally Posted by Elliott_CA View Post
Stocks are not liquid assets. They might seem that way right now (just push a button on your online broker's web page and your sell order is filled right away), but in a market crisis, when the circuit breakers kick in and markets are closed, your liquid assets won't be liquid.
Quote:
Originally Posted by Hoonose View Post
Stocks are typically liquid, meaning you can access that value in USD rather quickly.
Elliott_CA is right, you're... not wrong, just not quite as right.

Under normal circumstances, stocks are fairly liquid and you can cash them out (during market hours) immediately - within 1 business day.

But many things can step in to lock up that asset. They aren't frequent (although I wouldn't bet on that in the coming year) but it can be nasty to have one occur just when you think you can ATM away your funds.

Plus, weekends. A nearly three-day delay might not be considered "liquid" by some.

Not that this describes you, but being smugly assured that all the boilerplate about loss and availability and access and liquidity doesn't mean anything (because heretofore, it rarely has) is ridin' fer a fall, podnuh. Just like your bank reserves the right to delay savings and CD withdrawals for days if they opt to... but rarely do. Most of us have probably been bitten by that one at least once in a few decades of money-munging.
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Old 01-16-2018, 10:39 AM
 
Location: Aurora Denveralis
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Quote:
Originally Posted by hitpausebutton2 View Post
Just need the %1 to start spending more.. and i dont mean on more protection in banks, or spending it on a 20th summer home.
Spending by the wealthy tends to go only to other wealthy.
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Old 01-16-2018, 10:42 AM
 
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Quote:
Originally Posted by Quietude View Post
Elliott_CA is right, you're... not wrong, just not quite as right.

Under normal circumstances, stocks are fairly liquid and you can cash them out (during market hours) immediately - within 1 business day.

But many things can step in to lock up that asset. They aren't frequent (although I wouldn't bet on that in the coming year) but it can be nasty to have one occur just when you think you can ATM away your funds.

Plus, weekends. A nearly three-day delay might not be considered "liquid" by some.

Not that this describes you, but being smugly assured that all the boilerplate about loss and availability and access and liquidity doesn't mean anything (because heretofore, it rarely has) is ridin' fer a fall, podnuh. Just like your bank reserves the right to delay savings and CD withdrawals for days if they opt to... but rarely do. Most of us have probably been bitten by that one at least once in a few decades of money-munging.
Liquid enough for about anything I can think of. What would demand a boat load load of cash that you couldn't get in a few days? I'm sure someone can give me examples.
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Old 01-16-2018, 10:44 AM
 
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Originally Posted by Quietude View Post
Spending by the wealthy tends to go only to other wealthy.
Nah. Most of what I spend goes to local stores, Amazon and eBay sellers. And of course monthly utilities and HC premiums.

No doubt some of this goes on up to the rich. But most of it passes through the middle class.
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Old 01-16-2018, 10:45 AM
 
Location: Aurora Denveralis
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In theory, invested money stays there and short-term liquidity is irrelevant. I suppose someone can come up with a situation where a couple of hundred $k was needed within a business day, but that's not really the point... thinking of investments as a bank account is bad, bad thinking. Just because many people can and do use them as a savings account with quick access doesn't mean they are required to work that way, or are even structured to work that way, or won't suddenly become a lot more difficult to cash out in a crisis.

In other words, it's another case where theory and practice are the same in theory, but are not always in practice.
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Old 01-16-2018, 10:49 AM
 
Location: Aurora Denveralis
3,056 posts, read 1,034,591 times
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Originally Posted by Hoonose View Post
Nah. Most of what I spend goes to local stores, Amazon and eBay sellers. And of course monthly utilities and HC premiums.
Wow, I bet that's as much as $3-4k a month. No wonder the economy is so chaotic.

The wealthy (of which you're implying you're one) buy TP and OJ just like the rest of us... but none of them buy it in market or trade quantities. When you say "the wealthy should spend more" I assume you mean amounts that will affect the economy... but when they buy a $100m chateau, all but dribs of that go to someone else of their tier, and back into investments/savings/RE/vaults.

Veblen might have been on to something in the spats and gaslight age, but it's nonsense today.
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Old 01-16-2018, 10:58 AM
 
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Quote:
Originally Posted by Quietude View Post
Wow, I bet that's as much as $3-4k a month. No wonder the economy is so chaotic.

The wealthy (of which you're implying you're one) buy TP and OJ just like the rest of us... but none of them buy it in market or trade quantities. When you say "the wealthy should spend more" I assume you mean amounts that will affect the economy... but when they buy a $100m chateau, all but dribs of that go to someone else of their tier, and back into investments/savings/RE/vaults.

Veblen might have been on to something in the spats and gaslight age, but it's nonsense today.
They need to spend it on something that can actually have a real affect on the working class. Go buy some picture frames at the local frame shop to show off your million dollar paintings, or take your car to a local hand wash company and besure to tip some benjies to the person cleaning it. But nope, they instead just spend it on some useless crap that has zero effect on the market other then buying up houses and flipping it to the next millionaire.
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Old 01-16-2018, 11:06 AM
 
Location: Ruidoso, NM
5,170 posts, read 4,735,913 times
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Quote:
Originally Posted by Hoonose View Post
Depends on wealth accumulated and lifestyle.
Eh? You can accumulate a *lot* more wealth with 2x the salary, even if all you do is buy treasuries. Unless you started off with a few M$.
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