In today’s news we can but a checkmark beside the loss column, since the world’s biggest pension fund has lost $52 billion in stock rout, talk about a financial crisis. This calls as mayhem in domestic and international stock markets. Stocks have fallen down and investment gains have been washed out. According to Yahoo Finance, Japan’s Government Pension Investment Fund lost 3.9 percent, or 5.2 trillion yen ($52 billion). In addition, plummeting resources to 129.7 trillion yen, in Tokyo. That wipes out a 4.1 trillion yen spending return for the previous six quarters dating back to October 2014, the month it determined to put 50 percent of its possessions into equities. According to GPIF strong yen caused stocks to stagger.
More stats to look upon; Overseas stocks lost 7.8 percent, while overseas debt fell 8 percent, as the yen rushed 9.1 percent against the dollar. Things do not look swell as the Bank of Japan’s negative interest rates sent yields lower.
This decline is an additional distress for the fund following a reported yearly loss of 3.8 percent for the year that ended in March: the most horrible representation since the financial crisis that occurred 2008. The question is after this crisis was there any assets with a profitable performance. The answer is domestic bonds and yes.
In times like this there has to be optimism and solutions. When things like this happen we have to take it all in, accept it and search for answers. According to RT “The markets have since restored stability, and I believe stock markets are on a recovery trend. In the meantime, the exchange rate, the dollar/yen rate, is still flat. We are going to carefully monitor its movements going forward,” Shinichiro Mori said, as quoted by WSJ.com. In addition, hard work by the organization of Prime Minister Shinzo Abe plans to free Japan of devaluation and launch sustainable financially viable expansion. As well as extensive regards to influence families to convert part of their immense bank savings into assets and or investments.
If you think the U.S. is in good shape well your in for a surprise in terms of financial crisis’s. Here is some background stats if you are interested. According to Info Wars, The U.S. dating back to 2013 was in the midst of an appalling financial decline that was the result of decades of poor decision-making by governments. 30 years ago, the U.S. national debt was approximately one trillion dollars. In 2013, it was practically 17 trillion dollars. 40 years ago, the overall sum of debt in the United States was about 2 trillion dollars. I think once you start getting into the billions, better yet trillions, you’re really looking at trouble. If those numbers don’t make you go WOW, then you’re crazy. The US economy has clearly been in a mess for some time.
So this goes to you that this pension fund loss is no surprise, considering the world has gone through a lot of crisis’s and losses in terms of finance and debt. If I were you I wouldn’t plan on buying or investing into any stocks anytime soon. You’re just asking for trouble.