Pension Funds Move Out of Stocks at the Wrong Time?

If you read the paper we linked to a few weeks ago you know that institutions are just as bad at timing as you are.

Now there is an article in the WSJ that goes to show pensions are shifting their allocations away from equities into bonds that yield next to nothing.  The difficult part of this equation is that most of these funds still expect a 6-8% return on their portfolio.  Not sure where that is going to come from out of the magic alpha ether.

Will their timing be fortuitous?  History is not on their side.

Sortable pension table here.

Economist link to public pension funds here.