Well, their models never accounted for both bonds and equities to decline AT THE SAME TIME.
Anyone with an IQ above room temperature saw this coming. Money printer go brrrr + stratospheric sovereign debt created an inevitable flood of inflation. Inflation sharply devalues existing bonds. The inevitable reaction of hiking interest rates craters the equities market as debt-fueled corporations flounder in the face of servicing stupid amounts of debt they took on when interest rates were low...and now they have to issue new bonds as the old ones expire.
This is Austrian Economics 101 it's so obvious. I hope all of these pension funds go bankrupt until they learn.
>Well, their models never accounted for both bonds and equities to decline AT THE SAME TIME.
Anyone with an IQ above room temperature saw this coming. Money printer go brrrr + stratospheric sovereign debt created an inevitable flood of inflation. Inflation sharply devalues existing bonds. The inevitable reaction of hiking interest rates craters the equities market as debt-fueled corporations flounder in the face of servicing stupid amounts of debt they took on when interest rates were low...and now they have to issue new bonds as the old ones expire.
This is Austrian Economics 101 it's so obvious. I hope all of these pension funds go bankrupt until they learn.
(post is archived)