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I would recommend that the employees decline the funds manager strategy to invest most of the companys funds into mining. Although Minco Ltd is a mining company; the mining industry is known to be volatile and the long-term strategy of a pension fund requires an investment mix of stocks, bonds and cash. At during this time, it is imperative that fund managers and its recipients are cognizant of the economic cycle in which we are currently; in at this time we are currently in a recession and not every industry will survive the stock market lows. The employees have to consider the maturity of their pension; will this require a 20-year strategy or less? If so, then the fund can manage a little risk but overall, the pension needs steady returns. Pensions do not require the returns of a day trader willing to risk it all on a lucky hunch.

Also, we must be aware of the value of the US dollar. If the dollar is not stable it will cause inflation and affect the stock market. It holds that if confidence in the U.S. economy were to falter, then not only would the dollar fall but also the stock market (Hulbert, 2020). Some people have predicted that the dollar may fail and provide a way to a universal or digital currency.

Unfortunately, we live in unprecedented times. Reviewing the trends from 20 years ago may not be suitable for what is ahead. I would recommend that the fund manager plays it safe for the pension fund investing in high quality fixed-income investments. What hasnt failed is the investment in technology as that has continued to grow and shape the future.

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