Reproduced from eVestment; Table: Axios Visuals

U.S. pension plans already were above their target allocation to fixed income before the coronavirus pandemic, and the outperformance of fixed income during the first quarter has further shifted the tide, a new report from eVestment shows.

Why it matters: Fewer people are participating in the stock market's gains and losses.

  • This new paradigm was evidenced in 2019 when investors poured a record amount of money into bond funds while pulling a record amount out of stock funds.
  • That happened despite the S&P rising by nearly 30%, and stocks broadly outperforming bonds by a wide margin.

Why it's happening: The combination of an older population nearing retirement and anxiety about a record-long bull market in stocks shifted investors toward higher allocation to bonds and movement out of stocks.

One level deeper: Based on target allocations provided to eVestment, U.S. pension plans were over-allocated to fixed income by 450 basis points at the end of the first quarter and under-allocated to equities by more than 350 basis points.

  • In fact, pension funds were under-allocated to every asset class — equities, alternatives, real assets, multi-asset strategies and other — except fixed income and cash, the data show.

Go deeper: Americans are calm about their retirement savings despite coronavirus fallout

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The kids who are most at risk from the coronavirus

Illustration: Eniola Odetunde/Axios

The coronavirus isn't as deadly for children as it is for adults, but kids still get it and can still get seriously sick from it. The risk is higher for Black and Hispanic children.

Why it matters: In communities with high caseloads, cases among children could explode as schools reopen. And kids in the communities already hit hardest by the pandemic are the most at risk.

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Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Politics: Trump calls Fauci a "disaster" on campaign call.
  2. Health: Coronavirus hospitalizations are on the rise — 8 states set single-day coronavirus case records last week.
  3. States: California to independently review FDA-approved coronavirus vaccinesWisconsin judge reimposes capacity limit on indoor venues.
  4. Media: Trump attacks CNN as "dumb b---ards" for continuing to cover pandemic.
  5. World: Ireland moving back into lockdown as cases surge — Argentina becomes 5th country to report 5 million infections
Aug 14, 2020 - Health

California passes 600,000 confirmed coronavirus cases

A healthcare worker in Los Angeles handling a coronavirus test on. Aug 11. Photo: Mario Tama/Getty Images

California reported almost 8,000 new coronavirus cases on Friday, bringing the state's tally to more than 600,000 since the pandemic began, according to the state's Department of Public Health.

Why it matters: California is the first state to surpass the 600,000-case milestone. It also reported 188 deaths associated with the virus on Friday, bumping its total to almost 11,000 — the third-highest death toll in the U.S. behind New York and New Jersey, according to Johns Hopkins University.