Liquidity Risk

[THRESHOLD]

You only really understand the full value of liquidity when you need to get out of a position. Clearing all of my microcaps is proving to be a little challenging - at best!ns. I once saw a definition of market risk that went something along the lines of: "Risk is that variable that you only know when it applies." At first it seemed tautological. Over the years - I have come to appreciate the nuanced wisdom.

[prancing_horse]

Something like "Only when a mosquito lands on your t*sticles ......Do you truly learn to solve problems without violence. By the way creditors getting briefed today re Masonite

[THRESHOLD]

And the merit of wearing Pyjamas to bed. Interesting to know what happened at Masonite. I suspect they have just decided to call it quits. If that is the case - you should be okay!

[kwagga]

Any reason why you are liquidating everything now ?

[Preston]

@Prancing Horse, that is so funny. I am going to use that for my tweet.

[THRESHOLD]

I've been trying for a while now. Just not hard enough, I fear. I have no confidence in this place going forward. I think the Rand is going to cause mayhem. Anyway - I would sooner play the bombed-out resource counters than sit in these small caps. I also feel like we are in the last chapter of this story - "the end game." Time is not on my side anymore (if it ever was.)

[Rams]

Threshhold , thats like trying selling the burnt toast and giving away the toaster for free...no takers

[Rams]

trying selling = trying to sell

[THRESHOLD]

Not the toaster again...

[Rams]

on a more serious note, its better to be liquid at a profit than at a loss...

[THRESHOLD]

That is the philosophy at play here... "Sell while you can!"

[#12]

That is a contrary argument - you think the rand is going to play havoc on small caps, so you would rather invest in the one sector that is even more brutally exposed to the rand? Commodity prices are inextricably linked to the strength of the dollar - as is our beloved ZAR

[THRESHOLD]

Actually - no, it isn't! I think the commodities will recover. The Rand has other structural issues and will continue to fall (possible bounces aside.) Most of the small caps need a friendly local economy to thrive. The commodity producers do not! I will concede that I should rather not touch anything SAfrican since the poltical fallout will envelope the commodity producers.

[THRESHOLD]

I like OZ - her currency will recover with commodities. Look at her resource producers for a turnaround... I have transferred a quarter of my SA props (that I have been able to clear) into IAPF for tis reason.