tag:blogger.com,1999:blog-7609353726565000072.post8171589898016014174..comments2023-06-14T02:29:40.319-07:00Comments on PSPRS Pension Watch: PSPRS investment returns through June 2018 with a few other matters covered as wellDrop Zonehttp://www.blogger.com/profile/07195030344305212432noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7609353726565000072.post-33561615451991986122018-09-06T17:27:41.878-07:002018-09-06T17:27:41.878-07:00How do you know how PSPRS will do when there is a ...How do you know how PSPRS will do when there is a market correction? We can only work with the information that we have now. If we look at the returns on ASRS' portfolio, after both the crashes in 2000-01 and 2008-09, ASRS had recouped all its losses within the first two years of those events. Yes, markets will correct, but how much in gains is PSPRS giving up while it waits for the next correction? In the 20 years prior to the dot com crash ASRS had only one year in which it suffered a loss (FY 1984, -5.2%) against 13 years in which it had double-digit gains. If you earned 2% per year in annualized returns over two decades, your initial investment would be worth nearly 50% more. <br /><br />Maybe we will have another decade the last, maybe we won't maybe it will be like the last 20 years of the 1900's, but what we do know is that ASRS has consistently outperformed PSPRS regardless of market conditions. You may have faith in PSPRS' models and predictions, but results are all that matters.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-38303026959710453342018-09-06T13:57:34.887-07:002018-09-06T13:57:34.887-07:00You fail to prevent the flipside. If look Feb and ...You fail to prevent the flipside. If look Feb and March returns PSPRS significantly outperformed the Russell in both those months which were negative for the Russell. That is how the PSPRS portfolio is designed to take less risk and outperform in mark downturn. In fact, I would venture to say that very few public pension plans, if any, posted a positive return in March. We will see what happens going forward with the new CIO. The other issue is that the equity markets are extremely overpriced, we are in one the if not the longest bull markets in history and at some point there will be a correction. When that correction occurs PSPRS will be well positioned. Anonymousnoreply@blogger.com