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that is actually very good point. In the case of the pension fund I guess you do just pick the relatively cheapest option regardless of what you feel is the bro
by anm89 6y ago
that is actually very good point. In the case of the pension fund I guess you do just pick the relatively cheapest option regardless of what you feel is the broader situation.
On the other hand that is insanity and has the potential of turning into a humanitarian crisis IMO but I guess we'll see how that plays out.
- AnimalMuppet 6y agoYou mean, if they bought the return but then lost the principal when the price declined? Yes, it could.
- anm89 6y agoRight, like imagine a majority of all American pensions busting out at once because they all roughly bought SPY and QQQ and then we have some major bubble burst that takes more than a few years to resolve itself and those indices are down 40% for 5 years. If 3% returns is not fully covered, -30% returns would have to be an existential crisis. I would imagine many retired government workers would end out on the streets or instead they will print an ungodly amount of money to paper over and shift it into a different problem.