| So, why did stocks fall yesterday? I’ll tell you why. It’s because pension funds are reallocating money from stocks to bonds. Goldman Sachs noted days ago there would be $76 billion worth of stock selling this week. The sell-off was one of the most advertised and obvious in history! Why? Pensions try to maintain certain ratios between their stock and bond holdings. Because stocks have rallied so much over the last two months the stock allocations are too high — which requires pensions funds to sell some of their stocks and buy bonds in order to rebalance. THAT is what is happening in the markets today, NOT some kind of COVID-19 panic. Best Regards,  Graham Summers Editor, Money & Crisis |
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