Calstrs

Pension Plan Long-Term Returns Drop to Lowest Levels Ever Recorded

Since the tail end of last year, more and more talking heads in the financial industry have been sounding a message, “Be prepared for lower returns.” This, they say, was particularly true of a portfolio invested mainly in the US. A combination of persistently low yields in government bonds and sky-high corporate valuations even amidst a stall in earnings growth would be the recipe to bring this about, perhaps for as long as the next decade....