Wow! Dow Jones Industrial Average (DJIA) had surpassed the record 14,000 mark briefly on Tuesday. With the global capital markets looking for fresh indicators, DJIA record certainly provides the timely boost to regional markets like in Malaysia, Singapore and Hong Kong.
Currently in the midst of restructuring my stock portfolio. One of the bitter lesson that I learned was not to invest in stocks that have very little liquidity (extremely low volume, wide bid-ask spreads) no matter how good the fundamentals of the company are. Since market condition is random at most time, it will be extremely hard to cash out an under-performing stock at favourable price when it has low liquidity; thus the liquidity risk.
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