Foreign media reported that the Australian sovereign wealth fund “Future Fund”, which manages assets of US$135 billion (about HK$1.05 trillion), warned that major central banks are blowing the technology stock bubble, which will trigger a “clean-out” effect in global stock markets. “; U.S. technology stocks are particularly vulnerable, may appear similar to the burst of the dot-com bubble when the retracement.
The fund pointed out that the central banks to ultra-low interest rates and bond purchase program to cushion the impact of the Epidemic on the economy, has made the economy and financial markets fragile to withstand any shocks. “The concern is that central banks have used up all their ammunition and have little left to deal with the next crisis, and there will be another one! The concern is that prices in certain asset areas are already unsustainably high, and how much ammunition will be left for the central bank when these assets adjust? Not at all.”
Based on these doubts, the “Future Fund” has increased its cash position last year, from 17% in June to 20% at the end of the year. Such a conservative impact on the fund’s performance last year, the investment return of 1.7%, far below the 4.4% target, but also than last year’s global stock market rose 12% greatly inferior.
However, the fund still expects the next plunge to be similar to that of 2001, when the dot-com bubble burst.
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