Calpers’ investments in commodities to affect the U.S. economy

February 28th, 2008 | Category: Commodities

The commodities fad took a major step toward fitting an investment trend when investment giant Calpers — the $240 billion California Public Employees’ Retirement System — announced it may increase its commodities investments 16-fold to $7.2 billion through 2010, Bloomberg News reported Thursday.

Calpers, the largest pension fund in the United States, said it would hold amoung 0.5% and 3% of its assets in commodities. final year the fund invested $450 million in commodities.

Strong emerging market growth, particularly in China and in sections of Latin America, has created a bull market in oil, commodities and raw materials, and many economists say these

assets are likely to outperform both inflation and selected investment classes in 2008, and possibly for a longer instance period.

The Standard & Poor’s GSCI index of 24 commodities is up 10% so far in 2008, following a 33% gain in 2007. Meanwhile, the Standard & Poor’s 500 Index of stocks is down 6% that year, while U.S. Treasuries have netted a 2% return.

Continue reading Calpers’ investments in commodities to affect the U.S. economy

Original post by Joseph Lazzaro

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