Pension funds hold a significant % of US market cap; Mutual funds are also a big holder, often mandated to keep a high percentage invested. Then again, a recent article on the street.com lambasted certain funds for holding a high level of cash- money that could be deployed on weakness next week.
Most foreign money and insurance funds are in bonds. Insurers will likely liquidate some holdings in a controlled manner as claims are presented. Some claims will likely be delayed for some time- spreading the selling pressure over time.
All in all, probably have some selling pressure from hedge funds and individuals in equities, adjusting the risk premium higher. This is needed, IMO. Possibly some selling of bonds by foreign holders. The top may be in for bonds, with the buyers this week finding themselves the bagholders. BWDIK?
U.S. Pension Systems, With Assets of $2.1 Trillion, Express Support, Confidence in U.S. Financial Markets
Business Editors
WASHINGTON, DC--(BUSINESS WIRE)--Sept. 14, 2001--
A Press Conference Call with the presidents of the organizations will be held today at 3:30 p.m. Eastern Daylight Time. The USA Toll Free Number: 888-390-3408, PASSCODE: NASRA. You may also contact Pat Macht (916) 326-3991 or Jeannine Markoe Raymond (202) 624-1419.
Today, representatives of the National Association of State Retirement Administrators (NASRA) and the National Council on Teacher Retirement (NCTR) released a joint statement expressing their strong support of and confidence in the U.S. financial markets and urged investors to remain calm when markets reopen after the weekend.
The joint statement was circulated last evening. As of this morning, 20 state and teacher system directors had signed onto the letter and more are anticipated to do so throughout the day. As trust fund fiduciaries, the representatives expressed support for reopening the markets in an orderly manner, and relayed their confidence in U.S.
financial systems and the underlying strength of the U.S. economy.
They pledged to continue to provide stability in the U.S. financial markets and remain patient, long-term providers of capital. Finally, they joined all Americans in offering their condolences to the families, friends, and business colleagues who have been personally affected by this week's horrible events.
NASRA is comprised of the directors of the 50 state employee retirement systems as well as the public retirement systems for the District of Columbia and the four U.S. territories. NCTR is made up of 75 state, local, territorial, and university retirement systems, which include public school teachers and other public employees. Members of the two organizations are responsible for management of the retirement benefits of nearly 13 million state and local employees, retirees and beneficiaries, and combined pension assets totaling nearly 2.1 trillion dollars. |
