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RE: Public Pension Crisis: Now you see it, now you don't!
One Word, "Unsustainable."
Most Pension funds are going after higher yields assuming unnecessarily risky Investments if they are dealing with Zero Interest cash/bond returns, and when the recession hits it will be ugly.
That's exactly right. Chasing higher yields into riskier and riskier investments, and when the US market goes down 20% (or 80%), the investments will be downgraded, forcing the fund to sell, and that's the beginning of the end of that.