How CalSTRS Prepares for a Low Growth, Low Yield Cycle

The video discusses the challenges of achieving a 7.5% return in a low yield environment, emphasizing the need for diversification beyond fixed income. It explores alternative strategies, such as trading styles and government bonds, to maintain value during market downturns. The speaker addresses the potential impact of economic changes on investment strategies and highlights future growth opportunities in emerging markets and infrastructure. The importance of balancing portfolios for long-term growth is emphasized, considering demographic shifts and market conditions.

What is one of the main challenges in achieving a 7.5% return in the current economic environment?

• High inflation rates

• Negative or low yields

• Increased government spending

• Rising interest rates

Why has the allocation to fixed income been reduced?

• To comply with new regulations

• To focus on short-term gains

• To avoid negative yields

• To increase liquidity

What is the focus of the innovation team led by Stephen Tong and Carry Lower?

• Investing in real estate

• Developing new technology

• Exploring 30-year government bonds

• Increasing stock market investments

What is the speaker's view on the 'new normal' in economic growth?

• It will last forever

• It is caused by political instability

• It is a temporary phase

• It is driven by technological advancements

Which area is expected to provide growth opportunities according to the speaker?

• Developed markets

• Traditional manufacturing

• Emerging markets

• Cryptocurrency