Part 2: And Wells Fargo's Michael....>

US TSYS/STOCKS: Part 2: And Wells Fargo's Michael Schumacher and Boris Rjavinski

said they expect selling of US$6.0B in stocks at the month-end/vs. buying of

$5.0B in bonds. (Monday is July 31st, month-end.)

- They said "while EM stocks beat bonds by a significant margin, they typically

get smaller allocation than domestic stocks in pensions portfolios. Furthermore,

many pensions only rebalance at quarter-end. Consequently, we project modest

rebalancing needs for domestic defined benefit pensions: about $6 billion

selling in stocks versus $5 billion purchases in bonds at the moment."

- They add it's "possible that the post-FOMC rally in bonds has helped pensions

alleviate some of the rebalancing needs." They add that "if stocks and bonds

diverge into month-end, pensions may find themselves in a last-minute need to

adjust asset allocations in their portfolios." So they will "update the model

closer to month-end in case there is a meaningful change in pension rebalancing

projections."