And, for the state and the Alaska Permanent Fund, it did in the past week.
The $67 billion fund lost $2.8 billion during a stock market slump.
The slump is being blamed on the coronavirus spreading around the globe. (One hundred and two years ago today, the Spanish flu of 1918 went down in history as the most severe worldwide pandemic. It was deadly, but it also occurred before flu vaccines and antibiotics.)
Flu and pandemics aren’t new. Neither are slumps. And the reasons for them aren’t singular. In addition to the coronavirus, undoubtedly the current political terrain is a likely candidate.
Namely, the popularity of Bernie Sanders, a socialist who would like to become president of the United States, is creating concern. If he became president and implemented socialism — replacing capitalism — it would shock the market.
Like the coronavirus flu, the permanent fund’s loss isn’t the first of its kind. The fund lost $3 billion in a February 2018 slump.
Many events that make headlines affect the stock market. The market goes up and down. Various strains of flu appear annually. Political candidates come and go.
The commonality is change.
The permanent fund will gain again.