Fisher Investments: The Ol' Pensions Blues
12/2/2009 By Fisher Investments Editorial Staff
http://www.marketminder.com/a/fisher-investments-the-ol-pension-blues/cbe61fa6-7302-4033-9368-1281867c171b.aspx?source=home
The ol’ pension blues are back—but they needn’t rob investors of holiday cheer.
Story Highlights:
> Corporate and public pensions are underfunded, a fallout from the market plunge and from under-contribution.
> The same pension worries surfaced in the late 1980s and in 2002, and it turned out underfunding fears then were greatly overstated, as they likely are now.
> Corporations contributing more funds to pension plans could be a positive for markets if the extra funds find themselves into stocks, as they did in 2003.
> Underfunded pensions are a widely known phenomenon—meaning the negative impact is likely already largely priced into stocks.
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