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U.S. pension funds have just 38% exposure to equities vs. 60% only 7 years ago, notes former...

U.S. pension funds have just 38% exposure to equities vs. 60% only 7 years ago, notes former Templeton chief Mark Holowesko. Fixed income exposure is 41% vs. 28% 7 years ago. The S&P 500 risk premium (earnings yield less 10-year Treasury yield), he says, is at an extreme level of favoring stocks over bonds. More (I, II, III) on the rush into fixed income with yields at historical lows.
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Comments (6)
  • bbro
    , contributor
    Comments (10697) | Send Message
     
    Dang..you think they are on the wrong side???...
    2 Jan 2013, 09:33 AM Reply Like
  • Sammy Lee
    , contributor
    Comments (318) | Send Message
     
    No one wants to lose money in a rigged market no matter how attractive the spread is.
    2 Jan 2013, 09:34 AM Reply Like
  • Uncle Pie
    , contributor
    Comments (3785) | Send Message
     
    You can't go by these figures because the big pension and endowment funds have gone into hedge funds in a big way and many of the hedge funds are not only in equities, but are in equities with a lot of leverage added on. Netting it all out, the pension and endowment funds may be more allocated to equities than ever, if you include their levered hedge fund positions. But we'll never know since the hedge and "private equity" ie., LBO funds, don't disclose their holdings.
    2 Jan 2013, 09:41 AM Reply Like
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    Chasing returns.......they will get burned..but then again...the Federal government will "bail" them out....add a few more trillion to the mix..
    2 Jan 2013, 09:43 AM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
     
    S&P PE is over 21. The market isn't that cheap. Goldman and the rest of theives are waiting to unload their share at high price.
    2 Jan 2013, 09:53 AM Reply Like
  • bbro
    , contributor
    Comments (10697) | Send Message
     
    Is that 21 the Shiller 10???
    2 Jan 2013, 10:55 AM Reply Like
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