Markets - no basis for human wellbeing
The lack of security from market investments has been underlined recently with global sharemarket plunges reflecting dramatic losses for retirement savings funds, the Auckland Regional Council fund for public transport and stormwater and Environment Waikato’s investment fund.
As markets have faltered and failed the extent of our reliance on them has become more apparent.
People who have saved through personal superannuation schemes and investments in shares have suffered large losses in the value of their financial assets. Some reported losses are as high as 30% with assets now typically worth 15% less than they were at the start of 2008.
No investment has been immune. International share prices have fallen, finance companies have crashed (about half New Zealand’s approx 70 finance companies have failed in the past couple of years) while property prices have fallen and most predict at least a 15% drop in capital values on property over the next year.
Those looking to maximise returns on their money are left with the banks but even the big banks need government guarantees on investments and interest rates have fallen sharply in the latter part of this year.