As I am writing stock markets in London have opened and are 5% down on Friday’s closing prices.￼ The tumble goes on. The awareness that markets are failing and that large parts of the economy will not survive this crisis￼ is growing￼. I have already made it clear that I think that conditions must be attached to the bailouts that will inevitably follow, but this blog is about something else￼.
Despite the market now very obviously failing the government has not stopped the mandatory requirement that most employees in this country contribute to their pension fund this month, even though the contributions that they will be making from now and for a long time to come will probably simply be making good the funds lost over the last few weeks￼.
Quick question. Would you rather your pension was buying shares when they’re nice and cheap, or perhaps you think that we should all wait for them to be nice and expensive again before we buy any?