Since the great financial crisis of 2008, financial markets have learned to adapt to low rates. The result was market distortions and asset valuations out of touch with solid traditional valuation metrics. Adding insult to injury, people of all walks of life started to do ‘passive investing’ in hopes of achieving fast riches. Unfortunately, 2023 has arrived; it’s going to be higher for longer- the Fed pivot may never come so soon after all!
Pension systems are increasingly a hot topic for debate in European countries in the aftermath of COVID-19, especially given the systemic trends- most notably population ageing- and their impact on pension systems. The challenge remains, how will pension systems provide financially and socially sustainable pensions in the future? Without significant reforms, pension systems are heading towards a cloud of chaos and uncertainty.
Trading the stock market can potentially serve as a passive, income-generating activity, a hedge against burgeoning inflation, a primary occupation, a hobby, a stimulating experience.. However, it’s not as rosy as one would like to imagine.