A basic rule for initial assessment of a financial asset consists of placing it at the apex of a triangle that corresponds to it, as follows:
No bona fide financial instrument possesses all three qualities (high return, low risk and good liquidity) at the same time.
A product that seems to offer the qualities required to maximise or minimise all three points of the triangle has either been inadequately explained, with one of its characteristics undisclosed, or has a hidden flaw and should be submitted for independent professional analysis.
We therefore reiterate, as an extension of this basic rule:
At best, an asset can combine two qualities corresponding to two points of the above triangle.