Why Pension Reform is Inevitable, and How Reforms Can Benefit the Economy
“The six-year bull market is admittedly long in the tooth.” CalSTRS Chief Investment Officer Chris Ailman,Sacramento Bee, July 17, 2015
If what Mr. Ailman really means is equity investments may not be turning in double digit returns any more, that makes the recent performance of CalSTRS and CalPERS all the more troubling. Because according to their most recent financial statements,CalSTRS only earned 4.8% last year, andCalPERS only earned 2.4%. That leaves CalSTRS 68.5% funded, and CalPERS 77% funded.
Are we at the top of a bull market? Take a look at this chart:
S&P 500, Last Twenty Years Through June 21, 2015
