January 30, 2022
Wealth fund warns ‘permanent’ inflation will hit returns
By admin | |
Nicolai Tangen, CEO of Norway’s $1.3tn sovereign wealth fund said inflation could be stronger than expected: “It hits bonds and shares at the same time. For the next few years, it will hit both.” AQR Capital Management estimated that a classic portfolio of 60% stocks and 40% bonds would return just 2% annually after inflation over the next 5-10 years.