The Only Thing You Need to Read Today

Usually, just as a holder’s desire to sell and asset increases (because he has become afraid to hold it), his ability to sell it decreases (because everyone else has also become afraid to hold it). Thus (a) things tend to be liquid when you don’t need liquidity, and (b) just when you need liquidity most, it tends not to be there.

Howard Marks is out with his latest memo, and it’s a great take on the concept of liquidity. Every serious investor is reading this today and you should too.

No further preamble, just go:

Liquidity (Oaktree Capital)