A Hidden Bomb In The Stock Market?

A sell-off by overinvested pension funds may be looming

Many on Wall Street are obsessed with the idea that in a market decline, unsophisticated mutual-fund investors will panic, redeem their funds en masse, and turn a correction into a catastrophe. What the Cassandras seem to miss is the potentially destructive behavior by the sophisticated investors who run the nearly $5 trillion in private- and public-sector pension plans.

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