Worried about the current state of the economy? Don’t know where to start when it comes to investing?
Trading liquid assets might be a good place to start.
By trading in liquid assets, you can help protect your wealth and grow it over time. With careful investment, these assets could help you reach your financial goals sooner than you thought possible.
If you’re interested in trading liquid assets but you’re wondering what are liquid assets, don’t worry!
Keep reading to find out the top 7 liquid assets examples you can start trading today!
1. Cash
Cash is an asset that provides you with instant liquidity. That means it can be turned into other assets quickly and easily.
It’s also useful in the case of an emergency when you need to pay for something but don’t have what you need at that moment.
Cash isn’t just dollars and cents though; it includes checking accounts, savings accounts, money market funds, or CDs that can be accessed via ATM card or checkbook.
Any account linked directly to your checking account would fall under this category as well.
2. US Treasury Bills and Bonds
Government bonds are another type of asset that is easily traded. However, it may take a little longer to process the sale.
US Treasury bills can be bought and sold within 24 hours, but government notes or bonds may take several days, depending on the type.
They work well for longer-term investing because you can get rates of return above the rate of inflation. These assets make up about one-fifth of the world’s total bond market value which is currently at $75 trillion.
3. Stocks
Stocks are liquid assets that can be traded quickly. They’re also an investment that can provide an above-average rate of return as long as you invest in growing companies and hold on to those stocks long enough.
4. Bonds
Bonds are another type of liquid asset that you trade quickly. They fall under the same class as US Treasury bonds, which are debt securities issued by governments or corporations to raise money for projects.
One key difference is how long it takes to turn them back into cash. With a Treasury bond, you can sell your shares within days, while it may take weeks with a corporate bond.
5. Mutual funds
Mutual funds are an investment vehicle that pools the money of many investors together. Those investors have a fund manager who then invests those funds into various assets based on what that fund represents.
6. ETFs
These are investments similar to mutual funds except that you can buy and sell them throughout the day during market hours. That makes them more liquid than mutual funds, but it also means higher transaction fees.
7. Precious Metals
Precious metals are a way to diversify your portfolio. Many investors choose to hold some of their assets in gold or silver because they can be easily bought and sold if you need the money.
They also keep their value over time, which helps protect the purchasing power of that asset’s future buyers. You can also hedge foreign currency exposure by buying Canadian dollars and Swiss francs.
If you’re wondering how do you trade liquid assets, you can try using a liquid assets trading platform which will make the whole process easier for you.
Want More Help Understand Liquid Assets?
While stocks, bonds, and other traditional investments are a great way to grow your money over time, they aren’t the only option. We’ve talked about seven liquid assets you can invest in right now – from funds to collectibles.
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