Big Pension Selling Is Killjoy for US Stock Rally Ahead of Fed
- Month-end stock purge may be biggest in a year: Credit Suisse
- October stock rally means pension funds may sell equities
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Investors have something else to be nervous about before the Federal Reserve’s rate decision: US pension fund rebalancing that could turn gruesome for stocks.
The end of the month has some institutional investors -- including pension funds -- embarking on their regular review of market exposure to ensure strict allocation limits between stocks and bonds are met. But with the S&P 500 Index’s roughly 8% rally in October, such a rebalancing could force funds to dump shares.