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submitted 7 months ago by jeffw@lemmy.world to c/news@lemmy.world
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[-] catloaf@lemm.ee 1 points 7 months ago

No, they don't. Liquid assets don't increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.

[-] FlowVoid@lemmy.world 2 points 7 months ago* (last edited 7 months ago)

Stocks are liquid assets. They can increase in value.

T-bills are also liquid assets. They can also increase in value.

Savings accounts and money market accounts are also liquid assets. They can also increase in value.

[-] iknowitwheniseeit@lemmynsfw.com 1 points 7 months ago

I'm pretty sure that liquid assets are things that you can spend, so cash and bank accounts. Anything that you have to sell to buy things is not a liquid asset. (Note that we are not talking about barter. I had a friend at college who traded a snake for a VW camper, neither of which would be considered a liquid asset. Even though technically you could put the snake in a giant blender...)

[-] FlowVoid@lemmy.world 3 points 7 months ago* (last edited 7 months ago)

No, a liquid asset is one that can be sold quickly for its full market value.

For example, if you have stocks worth $100K, you can quickly convert them to $100K in cash. Whereas real estate is not liquid, because you usually cannot quickly convert a house worth $100K into cash.

[-] aesthelete@lemmy.world 3 points 7 months ago* (last edited 7 months ago)

Some people make a distinction between "liquid assets" and "near-liquid assets" and would classify something like a money market account (which also does grow in value as many liquid assets do) as a liquid asset, and maybe some forms of stock as near-liquid assets...but I'm splitting hairs.

Ultimately, you're right...downvotes be damned.

this post was submitted on 09 Apr 2024
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