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Liquidity could be at risk if stocks crash in 2017
One of the most important issues to investors, especially those in or near retired years is: liquidity.
People want to be able to access their money, whenever they feel the need without the risk of fees or restrictions that limit the amount of money that can be retrieved. For seniors this can be especially critical in the event of a health emergency or financial crisis where a substantial amount of money is needed in a relatively short period of time.
With that in mind, a story on CNBC caught our eye with the headline:
El-ERIAN WARNING: “BIG NEGATIVE SHOCK” CAN SPUR LIQUIDITY CRISIS
What does this mean?
Mohamed El-Erian is chief economic adviser at Allianz, the corporate parent of PIMCO where he served as CEO and co-chief investment officer. He serves as chair of the President’s Global Development Council, and is a contributing editor to the Financial Times.
He told CNBC that:
“A big negative shock could cause major volatility in areas newly exposed to risk. The risk has migrated from banks to non-banks, and that is going to be an issue. I think the biggest risk, if you ask me what happens if we get a big negative shock, is liquidity. ETFs promise liquidity at reasonable prices. It’s not clear that some of the ETFs in the high-yield space, for example, can actually provide that.”
Liquidity refers to the volume and pace at which assets or equities can be bought or sold in the market without a change in price. Exchange-traded funds, or ETFs, offer liquidity, but El-Erian says that they could be at risk if a major shock hits the stock market.
Watch below.
If you’re worried about not being able to access your money or that your retirement accounts lack the liquidity that you’ll require in the future, then you need to get educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small. This proprietary system is designed to ensure that your liquidity needs for the future will be met, Safety and security of your savings is out top priority. If and when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!
There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.
See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.
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