Pension Tension
-
Jason Goepfert
Published: 2019-11-08 at 10:51:29 CST
This is an abridged version of our recent reports and notes. For immediate access with no obligation, sign up for a 30-day free trial now.
Public pension tension
Public pension funds have been adding to their stock allocation, raising it significantly over the past year. They’ve also dropped their allocation to cash so their exposure to a downturn is among the highest in history.
Starting in the early 1950s, there was a clear bias toward bonds, which gradually changed during the 1960s and ‘70s then more rapidly in the ‘80s.
Several times over the past 6 years, it has reached an exposure level equal to the current one. A couple preceded some trouble, but a couple others did not. Perhaps it’s a minor concern, but not much beyond that.
Dow Cheery
While their relevance has shrunk, the Dow Jones Industrials and Transports were also tickling new highs on Thursday (including intraday data).
This is the first time they ticked at new highs together in more than 450 days. That’s one of the longer streaks since 1920 and among the largest over the past decade.
Both the Industrials and Transports did well after other coincident breakouts. The most notable aspect is the risk/reward, which is skewed heavily to the upside, as the few declines tended to be modest, with none of them leading to bear markets. Momentum is hard to defeat.
Related Posts:
- Margin debt rises at a furious pace as net worth drops to record low
- Stocks are more likely to soar when margin debt does this
- Investors' Cash Balances Struggling to Swallow Smart Money Supply
- Corporations Are Feeding the Ducks but Investors Still Have the Cash
- Leverage Drops While Stocks Soar to Record Highs
Tagged As:
The post titled Pension Tension was originally published as on SentimenTrader.com on 2019-11-08.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>