What can be read between the lines?

Is he world’s largest sovereign wealth fundwith more than 1 billion euros managed (1.22 billion at the end of 2022) and when it is pronounced, the markets square off. And at a time of maximum global economic upheaval, he has just done it.

We talk about Norwegian Sovereign Fundwhich belongs to this state and manages assets worth the amount mentioned above from this country’s oil, has just pointed out that we are dealing, specifically, with “the biggest changes in 30 years”.

We are seeing it, the war between Russia and Ukraine is damaging the world economy and raw materials, precisely, are at the center of everything, and this could lead this fund to losses up to 40%, calculate their managers. a drama.

What does he mean by this? A warning to sailors of what is coming to us? Should we panic or act with head and calm? Let’s try to translate it.

Stay with me

In the first quarter of this year alone, the Norwegian Sovereign Wealth Fund reported losses of 68,413 million euroswhich already puts on alert what may be the end of the year.

If this fund has losses, this year will be a loss. And you have to accept it. This year is not going to be good for investment, the turbulence that is occurring does not guarantee profitability in practically anything because things change from one moment to another. Therefore, Norway recommends assuming it and Act.

How? Managing risk. Namely, moving from passive to active management. There is no other, the money will not fall alone. If something falls. You have to go looking for profitability or, at least, lose as little as possible.

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And where? Well, the background says that “no where to hide”that is to say, that there is nowhere to get something this year, and we are talking about more than 500 people dedicated to this fund increasing its profitability, so we will have to pay attention to them.

Therefore, this sentence is important to know where the shots can go: “Two things are particularly important here: first, we must have an organization with sufficient resources to manage the risk and uncertainty, because there you can earn a lot of money. The hard part is not making money when times are good. The hard part is making money when the going gets toughs”, they have pointed out.

We can translate this by “stay with me”. That is, at a time when it is very risky to invest, stay on my side. It asks for confidence in its management and in a proven solvency for years. With that experience, it is postulated as an asset to invest in these times, in which many flee from the terrified markets.

Will we have to pay attention to them? Will they break the stats again? Time will tell.

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