Norges Bank Investment Management , one of the world's largest investors, says heightened uncertainty and concerns over the economic outlook mean that stock market risks are tilted to the downside.
Norway's sovereign wealth fund, the world's largest, was established in the 1990s to invest the surplus revenues of the country's oil and gas sector. "We with 70% in equities and 30% in bonds, and that's typically where you will find us in any market situation. Now, that said, you have to be realistic," Trond Grande, deputy CEO of NBIM, told CNBC's Silvia Amaro on Tuesday."The fund that we run has doubled in size over the last five years. Our equity portfolio has returned more than 100%. So, I think it is a time of being a little bit cautious.
Eric Johnston, chief equity and macro strategist at Cantor Fitzgerald, said last month that downside risks for the assets were very high.