CALPERS Trying to Cover-Up Leaks of their Mismanagement

Here is a board meeting of CALPERS illustrating that (1) the majority of the board is totally without any experience in financial markets and (2) they are trying to throw off the board anyone who points out they are in trouble. Pensions funds on average need 8% to break even. You will hear in this discussion a number of 5.5%. Back in 2008, CALPERS sold off its stocks to raise cash for obligations. In December, CALPERS sold off its Tobacco stocks, which was being politically correct rather then as a fund manager. You have people looking at these decisions by CALPERS, which are political, and they guess if the market should crash. That was the story in May 2016 when CALPERS was considering selling all Tobacco stocks. That decision came from the State Treasurer, not some investment manager. Back in 2013, CALPERS was being politically correct again and sold all stocks they held in two gun manufacturers. In 2015, CALPERS was considering selling all stocks to eliminate volatility.
I have stated many times that I have been called into board meetings around the world. I have been shocked at the lack of sophistication. Rarely do you find people who understand the financial markets, hedging, currency, or even how to invest. This is why I have not supported conspiracy theories that paint these institutions as all knowing. The truth is exactly the opposite. They need serious help.

This post was published at Armstrong Economics on Feb 3, 2017.