America’s Silent Crisis
America’s Silent Crisis by Zach Scheidt – Daily Reckoning
I ran into some disturbing news recently. News that makes me both angry and perplexed.
And it has to do with America’s pensions.
But here’s why it’s so important — even if you don’t have a pension:
Your tax bill could explode as governments around the country seek to bail out insolvent pension plans. And you know how much politicians like to use your tax money to bail out some constituent. They like to prove their “compassion” with your money!
And frankly, the disturbing news I recently discovered could wreck your retirement plans.
All because some bozos on Wall Street are completely inept at investment management. Actually, I’m not sure it’s it’s incompetence… or sheer laziness. But frankly, it really doesn’t matter.
What matters is that millions of retirees are going to wake up one day and realize that their pension fund payments stopped coming. At the same time, tens of millions of retirees are going to wake up to a market calamity.
And it all ties back to the miserable job U.S. pension fund managers are doing.
Let me explain…
As you know, we’re currently in a long-term bull market for stocks. Ever since the market bottomed following the financial crisis, stocks have been moving steadily higher. The current bull market is one of the longest-standing bull markets in history, now approaching eight straight years of advances.
In fact, I read where this is currently the third-longest bull market in modern history.
You would think that pension funds would be benefiting from this extreme bull market, right? After all, we know that there is a pension crisis in the U.S., with an estimated $414 billion shortfall in what corporations need to be able to pay retirees.
But instead of investing in the stock market, allowing strong returns to make up pension shortfalls, pension fund managers have been underweighting U.S. stocks.