Rising interest rates and the fear of giving back stock market gains are pushing pension fund managers to move capital from stocks to bonds. Goldman Sachs Group Inc. estimates that funds will pull $325 billion from stocks in 2024 on top of the $191 billion withdrawn in 2023, with some of that going into bonds.

Given the consternation over equity valuations and the lure of rising bond yields, this may seem like a sensible approach, even instructive for retail investors reconsidering their own portfolio allocations. Yet history suggests stocks are necessary for growth even when valuations favor bonds, and furthermore that copying pension fund trading can be a losing strategy for individuals.

QOSHE - Don’t Exit Stocks as If You’re a Pension Fund - Aaron Brown
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Don’t Exit Stocks as If You’re a Pension Fund

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23.04.2024

Rising interest rates and the fear of giving back stock market gains are pushing pension fund managers to move capital from stocks to bonds. Goldman Sachs Group Inc. estimates........

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