4 ms·
> Permanent funds, adequately funded, could leave a greater percentage of their money in equities, which has (historically had) higher overall returns despite l
by leroy_masochist 9y ago
> Permanent funds, adequately funded, could leave a greater percentage of their money in equities, which has (historically had) higher overall returns despite larger short-term drawdowns.
Agree, but they don't. Every pension portfolio I've seen has a lot of fixed income in it.
- sokoloff 9y agoHow many of those pension funds are adequately funded? (defined as "could pay out the already earned benefits for all current benefit holders without any future cash infusion") I think you see them holding fixed income and cash equivalents because they need current cash and future cash deposits. (They're pretty damn close to Ponzi schemes in a lot of cases.)