Low interest rates means pensions and sovereign wealth funds that have targets for growth (usually 7 to 10% for pensions) must chase riskier assets.
> Only nine of the 73 funds studied had an assumed rate below 7.5 percent in 2014, but about half had adopted rates below that percentage by the end of fiscal year 2017.
The only possible way to come even close to 7.5% is to buy equities or exotic assets like VC funds farther out the risk curve.
The easy money is everywhere, and fixed income is taking it on the chin.
And for people without money, everything good in life - high quality education, housing, food, healthcare, etc. - is only going up.
The best possible move for poor people is to get into as much debt as possible, as the amount they owe will decrease as inflation helps them. But I don't really like the idea of an even larger debtor society than we have now.
> Only nine of the 73 funds studied had an assumed rate below 7.5 percent in 2014, but about half had adopted rates below that percentage by the end of fiscal year 2017.
https://www.pewtrusts.org/en/research-and-analysis/articles/...
The only possible way to come even close to 7.5% is to buy equities or exotic assets like VC funds farther out the risk curve.
The easy money is everywhere, and fixed income is taking it on the chin.
And for people without money, everything good in life - high quality education, housing, food, healthcare, etc. - is only going up.
The best possible move for poor people is to get into as much debt as possible, as the amount they owe will decrease as inflation helps them. But I don't really like the idea of an even larger debtor society than we have now.