last shot
The final blow came Wednesday when Federal Reserve Chairman Powell warned that interest rates would stay high to tame inflation at the end of the last Fed meeting in 2022, dashing hopes that the central bank was preparing to ease its aggressive tightening campaign. Instead, policy makers have indicated that they will continue to raise interest rates to a higher peak than the market had expected.
US hedge funds are wary of a “trap” of equity rebounds
According to JPMorgan calculations, the Japan Government Pension Investment Fund (GPIF), the world’s largest pension fund at $1.6 trillion, would need to sell $17 billion worth of stock to return to its target asset allocation. Norway’s $1.3 trillion state pension fund could convert $12 billion from stocks into bonds.
A spokesperson for Norges Bank Investment Management, which manages the Norwegian government’s pension fund, declined to comment, and a spokesman for the Japanese government’s pension investment fund did not immediately respond to an out-of-hours email. in which he asked for a comment.
