CALPERS' Joe (in the headlight) Dear shares his $2 billion loss with Maria Bartiromo

5/20/10
Thanks to my very dear friend Gerry for calling my attention to the Maria Bartiromo interview this afternoon with the CNBC "big hitter" investment fund managers. Joe Dear (a.k.a Deer in the headlights) is another perfect example of who is "managing" people's hard earned money. Joe is the Chief Investment Officer of the California Public Employees' Retirement System (CALPERS). Prior to today's market open, Joe was responsible for managing $204 BILLION of assets. Well, Joe's responsibility was reduced by $2 BILLION today and he calmly states that they do "not make tactical decisions".

Joe (in the headlights) Dear notes that market conditions are "fragile" and he is much more confident long term. LONG TERM! Has Joe heard about the lost decade for the equity market?

Granda can not stress enough the importance of assuming more responsibility for your own investments. I am not recommending trading your own retirement account however NEVER, NEVER, NEVER assume that the fund manager starts his or her day with your interests at the top of their list. REMEMBER, they get paid a fee even if they lose $2 BILLION IN A DAY! IN addition, this Wall Street Investment Club set up a self serving measurement basis by comparing their "performance" to the Standard and Poor's 500. If this index is down 18% and the investment manager is "only down 14.8%", they pound their chest on how well they performed compared to the broader market. YOUR RETIREMENT ACCOUNT IS DOWN 14.8% and the manager will likely receive a "I beat the market" performance bonus!

Grandpa suggests simply taking a minimum of 2 hours per week (one episode of Lost and Bones) and review what is in your portfolio, familiarize yourself with overal economic data and how it might impact your investments and of course keep up on what our congressional buffoons are doing! Accept the fact that you need to assume responsibility for your future and take action as no one else has your back.

While you listen to Joe "in the headlights" Dear state that he is much more confident long term, keep in mind that on Tuesday, CALPERS stated they were going to vote on requesting another $600 million from the State of CA. The increase is needed, Calpers managers have said, after a 24 percent drop in the fund’s value in the past fiscal year. A 24% drop....grandpa's point is made!