And The Winner Is... Stocks, By Several Lengths

With the stock market reaching unexplored heights, about the last thing that DeWitt Bowman wants to do is embark on a $4 billion stock-buying binge. But Bowman, the cautious chief investment officer for the $79 billion California Public Employees' Retirement System (CalPERS), has his marching orders. Because of lower interest rates on bonds and the outlook that rates will remain low, the Board of Administration of the nation's largest public pension fund decided to increase its equity investments from 50% to 55% of the fund's assets. "It's hard to implement that with the market so high," sighs Bowman, "but we'll do it."

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