Crypto… “Worthless”?

Whoa. It seems one of our readers accurately predicted crypto’s action when she said: “[Cryptocurrencies] might start a bit lower but then shoot up.” In February, according to her estimation. (See bitcoin’s price below.)

Another reader believes crypto — and more — will easily go to zero…

“It will only take one good solar flare to render cryptos and SPPP worthless. Physical, in the hand, gold and silver will be the backup currency and they will soar.”

As for Democrats nominating a candidate center-of-left…

“Dems will choose a far left-wing loon because there are no centrists running. If you believe Biden, Bloomberg or Buttigieg are centrists you are a left-wing loon.”

Well, then.

Your Rundown for Tuesday, Dec. 17, 2019:

Nothing’s Sacred

The nation’s largest pension fund — the California Public Employees’ Retirement System or Calpers — “has struggled to consistently meet its 7% yearly target at a time of high retirement costs and ultralow interest rates,” according to an article at The Wall Street Journal.

“The pension fund has on hand only about 70% of the assets it will need to fund future retirement checks for more than 1.9 million California police, firefighters and other public workers.”

Point of fact: The $389 billion fund hasn’t hit the 7% mark in three of the last five years, and the fund’s experienced a change in leadership — on the investment side — three times since the taxing days of 2008.

The newest chief investment officer, Yu Ben Meng, has made swift changes, including “cut ties with a longstanding manager… jettisoned underperforming stock pickers, and slowed work on a multibillion-dollar private-equity experiment.”

As for private equity, since he assumed his role in Jan. 2019, Mr. Men’s fired 14 external equity managers. Instead, he’s experimenting with $14 billion, investing in internal strategies.

“The largest amount of money, $8 billion, went to an index fund representing the broad U.S. stock market, the so-called U.S. Total Market Index 3000 Strategy,” reports the website Chief Investment Officer.

“The next largest amount of money, $4 billion went to the International Developed Large Midcap Index Strategy, followed by $1.2 billion to an Emerging Markets Large/Midcap Strategy.”

The remaining money $485,000 was moved into Developed Countries Small Cap Index Strategy and $145,000 into an Emerging Markets Small Cap Index Strategy.

It will be instructive to see whether Calpers can bounce back above the 7% mark… and if such diversification works.

Market Rundown for Tuesday, Dec. 17, 2019

S&P 500 futures are up 6 points to 3,195.

Oil is up 35 cents per barrel to $60.56.

Gold is down 40 cents to $1,480.10 per ounce.

Bitcoin is down below $7,000 this morning to $6,851.96.

Have a great day. We’ll talk more tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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