Some of the most mysterious investors on the planet are about to pull billions out of stocks
According to a report from the Sovereign Wealth Fund Institute (SW FI), SWFs - investors with more than $30 trillion at work around the world who invest on behalf of governments - aren't going to keep all their money in this choppy market for much longer.From the report [emphasis ours]:
SWF equity holdings could fall to $2.64 trillion this year, the report goes on to say. That's down from from about $3.04 trillion at the end of 2015.Here's why this is happening: A lot of SWFs belong to oil rich nations like Norway, Russia and the Gulf states. In fact oil & and gas-based funds make up 56% of the wealth fund market, according to SWFI.
Naturally they've all been hurting since the price of oil started sliding last year.
SWFI sees emerging-market managers getting hit the hardest here, then conservative "middle-of-the-road" long only managers. Custodial money managers may get fired too, as SWFs try to do more and more in-house to save money.
This is why you start a rainy day fund, people.
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