[quote=SK in CV]
During the 15 years through 2007 (prior to the crash), CalPers average rate of return was almost 11%. Average. That included the dot com bubble burst. It was fully funded through 2007. They had two years in the ’90’s where their return was over 20%. They couldn’t have made that kind of return in low risk investments. The assertion that they only started making higher risk investments after interest rates fell is unsupportable by the evidence.[/quote]
The S&P was around 350 in 1992. It was around 1650 in 1997. Guess what that’s compound interest rate of 11%. Surprise, Surprise, CalPers managed to match the S&P over the same time period. Although one that was pretty incredible run for stocks and will likely never be repeated again.
