The above title is not only referred to 2020, but mainly to the last 30 years that stocks have been one way or another significantly rising. From this party, insurance companies and pension funds are missing.

Of course no one is so naive to believe that something is not done right. Both insurance companies and pension funds, are committed by strict legislation that imposes exactly what they should have in their portfolios. On the one hand, this is right because it prevents mismanagement and excess risk taking in portfolios that are mainly conservative.

On the other hand, it completely neglects the stock markets’ evolution which has led to zero interest rates. And as a result, to losses for many portfolios. Simply said, the legislation itself that tries to protect the assets of insurance companies and pension funds, with its attachment to the past, leads them with certainty to devastation.

In my opinion, under current circumstances, the Supervisory Authorities should review their stance and allow the significant increase in the percentage that these companies can invest in stocks. Sooner or later, I trust that this will happen and excessive funds will be directed to stock investments, since according to the following Fitch Ratings’s graph, the big insurance companies’ investment products’ composition scarcely has 2% exposure to stocks. I appreciate that this number should significantly increase, so that future losses can be avoided and future promises can be met.

Of course big companies seem to have realized that and they own pension programs for their employees, can set their own rules and now many such companies seek managers, who can measurably prove to them that they will have achieved their goals in the long run.