FYI: As the bull market enters its 11th year, state and local pension plans are piling on risk, as they try to make up shortfalls.
Public plans had a median 47.3% of their assets in U.S. equities at the end of the third quarter, according to database Wilshire Trust Universe Comparison Service. That is more than they have had since 2007 and up from 44.1% a year earlier.
Taking on more exposure to stocks is a riskier bet, especially as global economic growth is slowing and talk of a potential recession has grown louder. Those risks can translate to consequences in a decline: Big hits to pension funds’ stock portfolios during the financial crisis were followed by a wave of benefit cuts for government workers hired since then.
Regards,
Ted
https://www.wsj.com/articles/public-pension-plans-continue-to-shift-into-u-s-stocks-11572955200
