Classic schoolboy error


I read this article today, about how the Japanese government pension fund experienced 5 trillion yen “losses” last year.

This is not surprising, as the last few months have seen shares fall and the yen rise (my own portfolio is down on paper), but it does show the typical flawed viewpoint of the media in the title.

Losses are not losses until you sell.

The statement by the fund “We would like (the public) to have a long-term viewpoint.” is exactly how this should be approached.

Sadly many people don’t get this, and it hurts them financially.