Is My Fund a Liquidity Trap?
The answer is--almost certainly not. But it never hurts to check.
Fear or Fear Not?
My colleague John Rekenthaler recently wrote about the hazards of illiquid mutual fund investments. Long story short, mutual funds and illiquid investments are a potentially lethal combination, as funds can’t meet daily redemption requests if they can’t easily value and trade their holdings. The mousetrap breaks.