FAQ: stock market losing value
What happens if there is a year (or more years) during which stock market loses money?
There can be years in which the stock market increases in value, but there can also be years when the stock market loses money. If that happens, we take the following measures:
- If there is a year where the stock markets lose money, we transfer only a small amount to the charities (1% of the invested value of the donation).
- We keep transferring only a small amount, the 1%, in the following years with positive interest, until the losses from the year(s) with negative interest are corrected.
- After this, we resume our regular interest transfers to charity.
This way, we continue to provide support to charities, also during years when the stock market performs less good. Good to note: in the long term there are more positive than negative years: the interest on stocks is on average 7.0%.