Beware The Stampedes: Public Pensions Flock To Credit As Investors Flee Stocks

The herd mentality is in full force on Wall Street, but two groups are stampeding in different directions. Equity investors have spent the last couple of months dumping stocks across sectors; meanwhile, public pension plans have been pouring money into credit as the cloud of unfunded liabilities lingers. In fact, one analyst reports that pension allocations to credit hit a new record last month. Q3 hedge fund letters, conference, scoops etc Even though stocks are selling off right now, the heavy pension-lend credit buying should eventually lead to a rally in equities. Pension plans putting their money to work Canaccord…