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  • Wall Street Breakfast: Must-Know News [View article]
    Investors flee stocks, leaving hedge funds in driver's seat. Pension fund managers say they continue to shave their exposure to equities, fleeing stocks for bonds as they try to achieve stable returns that more-or-less keep pace with their obligations.
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    Another foreseeable unintended consequence of further QE will be reduced returns on most fixed income instruments. Those currently holding debt should benefit from appreciation as rates drop but those making fresh purchases a year or two from now will be hard pressed to meet projected returns of 7% to 8%. All of this will simply further aggregate the problem of unfunded pension obligations.
    Oct 18 08:32 AM | 6 Likes Like |Link to Comment
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