My point is pension funds are no longer heavy on fixed income. Instead they are heavy on stocks. Kind of forced there by the fed. So the fed won't allow them to go bust. Right now they are moving goal posts -- from 2% inflation ceiling to 2% long term average to what appears to be a 2% floor. And they continue to change the way inflation is measured. I don't believe the following is a recent change, but still a very weird thing:But we are not in a ZIRP era. We are in more of an average historical interest rate framework right now. As a result, low interest rates cannot be used to justify the valuations.
That was then and this now. The entire pension system depends on stocks going up. Back then, the bulk of their investment was actually fixed income and they benefited greatly from the move to ZIRP.
"According to the US Government, the cost of health insurance has declined 29% over the last 2 years and 12% over the last 5 years..."
https://x.com/charliebilello/status/1857446261684658521
For most people I talk to, the reported rate of inflation does not match the rate of inflation they are experiencing. Those on salary are hurting. Those that depend on rental income and assets are doing great.
Statistics: Posted by anoop — Tue Dec 03, 2024 8:56 am — Replies 382 — Views 35092