Greystone warns of valuation risk as Portsmouth retirement fund pulls back equity exposure

Greystone and its investment team told the Portsmouth Retirement Board on Oct. 15 that recent market gains have been substantial but carry risks if corporate earnings or Federal Reserve easing do not materialize as the market expects. Jim (Greystone) said the firm’s baseline forecast is that “real GDP should come in about 3 to 3 and a half percent” for the third and fourth quarters, and he told the board that year‑end 10‑year Treasury expectations remain near 3.8 percent.

Brian (Greystone), who reviewed the pension portfolio, said the plan’s long‑term target allocation remains 70 percent equities, 22 percent bonds and 8 percent alternatives, but that the fund was running a bit north of…