CalPERS, California Pension Plan for government workers, is adopting policies that demonstrate that they are incapable of managing money. They cannot handle the “volatility” in stocks so they are moving into bonds, and whatever shortfall they produce should be made up with higher taxes. If you are in California, my condolences. This is a strategy that will cause more government pension funds across the country to follow their lead. You just can’t make up this stuff. Selling stocks and buying what amounts to a 5000 year low in rates (high in bond prices). And you wonder how steep the cliff might be on the other side of the ECM? No, we do not advise CalPERS. I imagine government entities will not use our service until they have no choice.