Online:
Visits:
Stories:
Profile image
By Reason Magazine (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Pension Funds Should Beware the Trump Bump

Monday, March 20, 2017 12:49
% of readers think this story is Fact. Add your two cents.

(Before It's News)

While it’s too early to tell what the Trump Administration’s full impact on the American economy will be, pension funds can (for now, at least) breath a little bit easier thanks to the Trump Bump’s initial effect on the stock market. These early returns are promising, but it’s unlikely they’ll be with us forever.

In this commentary, I discuss the potential effect the Trump Bump could have on pension funds, and why institutional investors should be cautious when making their decisions based on this early news. Business confidence is up and promises to increase growth and bring jobs back to the United States inspire a general sense of optimism in the market, but the current mood shouldn’t inform any major investment policy changes by pension systems.

“[T]here’s strong evidence that even if the upswing isn’t part of a bubble, it’s a temporary reaction to a presidential election. Of the past 22 elections, 14 saw an increase in the S&P 500 between election day and inauguration (two of those were during the Great Depression). Between November 9th and January 18th, the S&P rallied by 6%. This shouldn’t be confused for good news: Herbert Hoover in 1928 experienced the largest post-election bump in U.S. History.”

The Trump Bump is good for pension funds now, but governments should use caution when making investments that are supposed to last through the careers and retirements of their employees.



Source: http://reason.org/blog/show/pension-funds-should-beware-the-tru

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.