The head of the world’s best performing sovereign wealth fund warned of an impending pullback in US stocks.
The New Zealand Superannuation Fund’s CEO said US returns in recent years were “close to double annualized returns for the past 20,” echoing the CEO of Norway’s $2.3 trillion oil fund — the world’s largest — who told CNBC that “we should not be expecting the same kind of returns” as in the last six months. Bank of America also said the US was “overdue” for a pullback.
Still, strong retail and employment figures suggested the economy could withstand higher interest rates, and AI-fueled profits are set to drive growth across every sector of the S&P 500 in the third quarter, Bloomberg Intelligence said.