This is complete and utter bullshit. I didn’t even know there was an organization named the sovereign wealth fund institute, let alone publish erroneous reports about impending doom for equities.
This sort of refuse has been scaring people since the Middle Ages. It’s in line with “Japan is gonna buy America”, “China is gonna sell all of its treasuries and crush us” to “Gaul is gonna withhold French wheat from the Roman armies and starve Rome.”
At any rate, this group is making scandalous assertions this morning, a morning in which a terrific rally is to be had.
Sovereign wealth funds may withdraw $404.3 billion from global stock markets this year if oil prices remain in the $30 to $40 per barrel range, according to the Sovereign Wealth Fund Institute.
Wealth funds, which have amassed about $7 trillion in assets, exited about $213.4 billion of listed equities last year as the slump in crude oil put pressure on domestic finances, the Las Vegas-based SWFI said in an e-mailed report sent Monday.
“Two years ago, the cracks started to appear,” according to the report. “The commodity-price scenario changed sovereign institutional investor behavior from their heydays starting in 2004, which include investing in the Chrysler Building, Chicago Parking Meters and bailing out banks like Citigroup.
No word as to where these funds will be allocated after they’ve been withdrawn from their brokerage accounts. Perhaps they’ll all get tossed under mattresses?
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Vegas-based? Ha!
@fry I was gonna say the same thing! lol
More Devil Dogs. Bullish.