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US Pension Funds May Invest $400 Billion in Stocks

US pension funds, which delayed the rebalancing of their portfolios, might invest $400 billion in shares in the next two quarters, Reuters reports citing JP Morgan analysts.
US Pension Funds May Invest $400 Billion in Stocks

This is what pension funds did after the mortgage crisis. In particular, in the first quarter of 2009, the institutions bought up shares for $200 billion, which are currently equivalent to $600 billion.

Sharp market fluctuations are a problem for asset managers who hedge risks and try to make money.

Regulators are trying to hold back imbalances in the debt and stock markets. Thus, in March, FRS took a number of unprecedented incentive steps. The measures taken allowed stop the fall of markets. The amount of FRS is currently at a record $5.6 trillion. Analysts believe that by the end of the year this figure could easily double. The launch of quantitative easing programs noticeably reduced the attractiveness of repo deals with FRS for primary dealers, making it possible to sell Treasury securities directly to the Federal Reserve.

Source: https://www.reuters.com/article/us-health-coronavirus-portfolio-rebalanc/us-pension-funds-may-pour-400-billion-into-stocks-lifting-virus-hit-markets-jp-morgan-idUSKBN21I3MQ

Photos are from open sources.

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