Around the world are financial markets suffering? It is red all over the place. This is problematic for everyone. Not only if you are having your investments. Complete economies are going into lockdown. But what does this mean for your financial future? After all is everyone a investor. Are you not directly investing, then is your retirement/pension fund doing so for you.
Not only the public retirement funds are hit, but also the private ones. I doubt any retirement fund in the world would not be affected.
Both types of funds are overinvested in paper assets. Paper assets that have no underlying value.
For quite some time I wanted for a black swan event. It could be the case. The coronavirus could be the black swan event which triggers a complete financial reset.
One of the big issues are corporate pensions. They have a blowback that is not the case with public pensions. Public pensions shortages are the fault of politicians. But private pensions, especially in the United States, we will see that they are taking down the company as well.
Let me give you an example. General Electric has its pension program. It is valued at around 100 billion. For every 0,25% that the markets to down they need to put an additional 2 billion in the program. As we all know is General electric on the verge of collapse.
One of the few things you can do is to take control of your own retirement money. Simply take it into a private program, if possible. Then move to safe-haven assets. Assets that are growing your retirement fund during a crisis.