moneymakeover
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I have been considering how to allocate
my pension , what risk to take
One rationale regarding investing in equities is: we can depend on one thing: currency devaluing.
Every time there is a crisis governments across the world will respond by printing money.
The value of the sp500 (say 4400) market cap is around $38 trillion.
Economic activity has been reduced if anything during the pandemic and yet it has doubled over past 5 years.
Further money printing, in the next crisis will see the markets go even higher.
I say all this by way of explanation as to why it makes sense to remain invested in equities long term in a pension portfolio.
To illustrate,
seekingalpha.com
![1633590378091.png 1633590378091.png](https://www.askaboutmoney.com/data/attachments/5/5699-e6d4bb33e539ec4c546a7b776b1f8216.jpg)
my pension , what risk to take
One rationale regarding investing in equities is: we can depend on one thing: currency devaluing.
Every time there is a crisis governments across the world will respond by printing money.
The value of the sp500 (say 4400) market cap is around $38 trillion.
Economic activity has been reduced if anything during the pandemic and yet it has doubled over past 5 years.
Further money printing, in the next crisis will see the markets go even higher.
I say all this by way of explanation as to why it makes sense to remain invested in equities long term in a pension portfolio.
To illustrate,
![seekingalpha.com](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1142952057/image_1142952057.jpg?io=getty-c-w1536)
Money Supply: A Good Predictor For S&P 500 Index
The relation between the stock market and money supply is examined at different lags to formulate a predictive model for the stock market.
![seekingalpha.com](https://seekingalpha.com/samw/static/images/favicon-16x16.png)
![1633590378091.png 1633590378091.png](https://www.askaboutmoney.com/data/attachments/5/5699-e6d4bb33e539ec4c546a7b776b1f8216.jpg)
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