Once Again some bad(ish) economic news that does not fit neatly into "Biden is bad or “Biden is good.”
Stock portfolios at large pension funds had a blockbuster run. Now, managers are cashing out.
Corporate pension funds are shifting money into bonds. . . .
While stocks have slumped recently, the S&P 500 remains just 4.4% below its record close. The index’s 10% gain through the end of March marked its best first-quarter performance since 2019. . . .
Goldman Sachs analysts estimate that pensions will unload $325 billion in stocks this year, up from $191 billion in 2023.
“You don’t want to give away all of those hard-earned gains,” said Zorast Wadia, a principal and consulting actuary at Milliman. “You don’t want to give it back if stocks fall.” . . .
I don’t recommend anyone change their entire strategy based on a single article in the WSJ. But I think in light of this, investors may wish to exercise a little more caution this year.
https://www.wsj.com/finance/investing/pension-funds-stocks-bonds-679b8536
