Low Trading Volumes Potentially a Pension Problem. - News and Current Events | futures io social day trading
futures io futures trading


Low Trading Volumes Potentially a Pension Problem.
Updated: Views / Replies:495 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Low Trading Volumes Potentially a Pension Problem.

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Low Trading Volumes Potentially a Pension Problem.

Low trading volume is due in part to large institutional investors like pensions that are sitting out the rally. Contrary to what some think, they might not ever leave the sidelines.

Strategists and analysts expect them to come back when the stability of the stock market convinces the guys running these $1 billion-plus pools of capital they won’t lose their shirts (namely, money for pension payouts).

But the institutions themselves are telling a different story. Because of equity-risk controls they put in place after the 2008-2009 market wipeout, they may not leave the sidelines at all. There has been a shift in the way that institutions, pensions specifically, model their portfolios, and much of that change has been codified.

“Pensions aren’t coming back. They’re hedging their assets and that means owning more bonds,” said Steve Charlton, director of consulting services for NEPC. NEPC helps guide the asset allocations of pensions and nonprofits, and its clients have more than $655 billion in combined assets.

J.P. Morgan strategist Thomas Lee is among those attributing low volumes to a pullback in stock investing from institutions, and cited historical evidence showing that after previous pullbacks, pensions returned to the stock market. But history may not be the best guide. The last few years have seen a large-scale diversification among pensions, so even if these institutions increase equity, they don’t plan to return to the U.S. stock market in force.

For example, the roughly $75 billion North Carolina Retirement System cut its exposure to domestic equity by 2% in 2010 and 10% last year. And the $154 billion Florida State Board of Administration has also shoveled cash into alternative investments like hedge funds and private equity.

It just got permission from its legislature to boost its strategic investments, such as private equity, real assets and hedge funds, up to 16% of its portfolio, which would result in a cut of four percentage points to its global equities portfolio. But even a small proportion of the fund is a big lump sum — about $6 billion.

Yes, that’s billion with a “b.”
The previous standard for a typical pension plan was 60% equity and 40% fixed income, which concentrated most of the portfolio’s risk in equities, said NEPC’s Charlton. So after 2008, when the stock market crash took a big bite out of their portfolios, there has been a flurry of equity cuts.

There has also been a shift of perspective–funds have shifted their outlook on domestic equities to a global view. Florida is one of those funds. It combined domestic and foreign equity allocations into one global portfolio, making it easier to move investments across borders.

Some of Florida’s funding has gone back into equities by way of hedge funds with a long/short strategy, said Dennis MacKee, director of communications for the Florida SBA. But so far, they only make up about a third of its hedge fund portfolio, which is less than 6% of the fund.

And as Charlton points out, it’s likely that the days of institutions going long U.S. stocks are over.

“It was definitely a reaction to too much volatility in portfolios,” said Charlton, “I don’t think clients are going to back out of that at this point. They’re enjoying more consistency in their portfolio returns, a lot more diversification and fewer surprises in the ultimate outcomes. Investors are done with surprises.”


Low Trading Volumes Potentially a Pension Problem - MarketBeat - WSJ

Reply With Quote

Reply



futures io > > > > Low Trading Volumes Potentially a Pension Problem.

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Is trading a skill or is it a problem waiting to be solved. DionysusToast Traders Hideout 44 January 12th, 2016 01:50 AM
China Hard Landing Potentially Biggest Risk For Global Economy In 2012 GridKing News and Current Events 0 February 7th, 2012 10:18 AM
Europe Opens To Risk Off Amid Low Volumes Quick Summary News and Current Events 0 December 23rd, 2011 07:10 AM
Storm Aftermath May Depress Volumes as Week Begins Quick Summary News and Current Events 0 August 28th, 2011 09:00 PM


All times are GMT -4. The time now is 12:51 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.07 seconds with 19 queries on phoenix via your IP 54.221.93.187