Excerpt: Overall, the system's investment strategy is similar to that of many other large pension funds, which have also posted steep losses. The funds emphasize that they're long-term investors, resistant to the shocks that might rattle smaller players into shifting away from stocks into less-risky investments.... [S]upporters of a heavy reliance on stocks argue that the stock market is closer to the bottom now than it was two years ago; they say it would be foolish to sell now.

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