POPA Reconi wonder which SWF or pension fund is selling US equities. Selling US treasuries make sense if they expect the fiscal deficit and debt…
i wonder which SWF or pension fund is selling US equities. Selling US treasuries make sense if they expect the fiscal deficit and debt issuance to be unrestrained. For US equities - are valuations overstretched? or maybe bonds/money markets provide a better rate of return to their portfolio rebalancing needs? Esp in an ageing society - they need more rates/fixed income rather than equities. Maybe they are just realising their gains over the past 5-6 years since Covid and reabalancing? Or could it be China/Saudi - over geopolitical?
The excerpt is quoted from a public Telegram channel, which owns its text.