Richard Ennis’s Insights: Overexposed? Public Pension Funds Have a Lot Riding on the US Stock Market, Possibly Even More than They Realize

Abstract

Despite efforts to diversify internationally, public pension funds in the US have a significant, latent home-equity bias. The home bias takes on added importance in light of the extraordinary valuation level of the US stock market. All in all, public funds are betting heavily on the home market and paying up to do so. Caveat!