The most conservative approach to an investment portfolio according to common wisdom is SLY (Security, Liquidity, Yield – in that order). But maybe LSY is more appropriate with the liquidity problems from investing in AAA Money Market Funds without being able to redeem the cash ? I met with a Funds manager the other day and he told me that his bank has developed Funds that ensure high Liquidity with high Security as a given. (I guess the Y is not worth discussing). They have as much as 30% of the Funds liquid at any point in time to be able to pay out even on the same day.
These times are interesting – old perceptions and best practices are challenged every day. In the big perspective we are fortunate to experience and learn from this meltdown.
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