Quote of the day by Myron Scholes: "At times of shock, converting illiquid assets to cash to build flexibility is very expensive. Finding an umbrella in a rain storm might be impossible or very costly."

Nobel laureate Myron Scholes emphasizes liquidity's value during market shocks. Illiquid assets become difficult to sell without significant price reductions. Finding cash during a crisis is often impossible or extremely costly. Investors should maintain adequate liquidity and diversify their portfolios. This preparation ensures flexibility and avoids forced sales during volatility.