Posted 1/15/2024, 3:13:21 PM
Norway's $1.5 Trillion Fund Braces for Gloomy Returns Ahead Amid Unhappy Cocktail of Economic Threats
- Norway's $1.5 trillion sovereign wealth fund expects low investment returns ahead due to high inflation and other economic pressures
- The fund's CEO warns of wage spiral inflation, climate effects, geopolitics, and trade issues creating an "unhappy cocktail"
- Central banks aggressively raised rates to combat inflation, but more hikes may not be needed as economies slow
- The fund lost $34 billion in Q3 2022 after tech stock rebounds, following a $143 billion return in the first half
- Big market disruptions often come from unexpected events like financial crises, natural disasters, pandemics - the "jokers"