Central banks are warning investors on liquidity risk

http://www.wsj.com/articles/central-banks-make-waves-on-liquidity-risk-1432122128


For financial markets, deciphering the message from central banks is often a case of being able to separate the forest from the trees. One densely wooded and potentially thorny area centers on how much compensation investors should demand for risks related to liquidity.
The fine details of the next policy step from central banks clearly matter to investors. Vast amounts of analysis are invested in the question of whether the U.S. Federal Reserve will raise rates in June, September, December—or even later. The path of the European Central Bank’s quantitative easing program is an endless topic of discussion.
Important though these arguments are, they speak to the short-term focus of financial markets. Often, the real issues for investors arise due to long-term shifts in policy that tend to have slower, but more profound effects.