last hit
The final blow came on Wednesday, when Federal Reserve Chairman Powell warned that interest rates would remain high to tame inflation at the end of the Fed’s last 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 peak higher than what the market had expected.
US hedge funds are wary of a “trap” of stock rebounds
According to JPMorgan’s calculations, the Japan Government Pension Investment Fund (GPIF), the world’s largest pension fund at $1.6tn, would have to sell $17bn worth of shares to get back to target asset allocations. Norway’s $1.3tn state pension fund could convert $12bn from stocks to bonds.
A spokesman for Norges Bank Investment Management, which manages the Norwegian government pension fund, declined to comment, and a spokesman for the Japanese government pension investment fund did not immediately respond to an email outside of business hours seeking comment.