09.09.2014 - Tsunami of sovereign funds threatens world markets, say investors
With returns on government bonds at rock-bottom prices, sovereign wealth funds are muscling into stock markets and other higher-yielding assets like real estate at a rate that private investors warn could destabilise the world economy. Since central banks cut interest rates to record lows in a bid to shore up flagging economic growth, world governments have had to look further afield to grow public pension money or central bank currency reserves. But the resulting tide of money is in danger of distorting markets, causing prices to reflect political priorities rather than financial reality, insiders say. It's also threatening to inflate the very price bubbles that central bank teams globally are working so hard to prevent, experts suggest..............................................Full Article: Source
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