Top sovereign wealth fund executives warn of impending pullback in US stocks
The head of the world’s best performing sovereign wealth fund said US returns in recent years were “close to double annualized returns for the past 20.”
Sovereign wealth fund executives are warning of an impending pullback in US stocks, as recent returns have been significantly higher than the long-term average. The head of New Zealand's top-performing fund noted that US returns have been close to double the annualized returns of the past 20 years. Norway's largest sovereign wealth fund CEO echoed similar sentiments, stating that investors should not expect the same returns as in recent months.
Bank of America also indicated that the US market is overdue for a pullback. However, strong retail and employment figures suggest the economy may be able to withstand higher interest rates, with AI-driven profits expected to drive growth across the S&P 500 in the third quarter, according to Bloomberg Intelligence.
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