My initial reaction to the credit “crunch” last year (apart from bailing on equities) was to wonder about the state pension funds. Everybody looked at me like I was from mars.
I downloaded the .pdf for my states fund. I don’t have any money in it at all but I thought it would make a good bellwether. I read it and didn’t like it a whole bunch 6 months ago. I read it again and I really don’t like it - all the “usual suspects” are there, along with a portion of the portfolio was allowed to trade in CDS (collateralized debt swaps) and MBS (mortgage backed securities, etc.
I know “I told you so” is never in order, but c’mon.
(This is not advice) One of the nations top financial planners has noted to his clients to stay-away from muni’s for this reason.