| Market watchers continue to voice concern about sovereign wealth funds and their potential to impact global equity markets in 2016. SWFs, government-owned investment pools, sopped up petrodollars when oil prices were north of $100 a barrel. In turn, this money was pumped money into funds run by the world’s biggest asset managers.
But oil prices plunged in summer 2014 and continue to languish near $30 a barrel. That means governments that sat on comfortable budget surpluses are now projected to have deficits in the years ahead. SFWs, which own a lot of property and private equity investments, are prone to sell their liquid stuff (stocks and bonds) first...............................................Full Article: Source
|