Huge loss of 164 billion US dollars! World’s largest sovereign wealth fund hits record loss

As the saying goes, there is no general victorious on a treacherous battlefield. It should not be against harmony to compare the financial market, especially the stock market, to a battlefield without gunpowder. The sovereign wealth funds of various countries can crush most players in the investment market, regardless of their financial or human resources, but this does not mean that the “generals” can dominate the market forever. In fact, losses are nothing new.

It’s just that this time the Norwegian Global Government Pension Fund has attracted everyone’s attention because it bears the title of the world’s largest sovereign wealth fund and its losses are too exaggerated. Analyzing the fund’s strategic issues now is completely an afterthought, and black swan factors such as the epidemic and the Russia-Ukraine war are even more difficult to accurately predict.

Here, I personally want to talk about low-risk investment products. We have always been instilled with the consensus that buying funds is less risky than buying stocks, and buying pension insurance is even less risky than buying funds, because they can better diversify risks and trade time for space. Whether such a consensus is correct depends on past experience. In the past 20 years, major countries in the world have been at peace, and the global economy has allowed everyone to be in a win-win situation in stages. Give your money to value investing professional institutions, as long as you can afford it, there is nothing wrong with it.

But what about the future? Although professional institutions have repeatedly stated that they put their eggs in different baskets, we need not worry about their ability to operate funds at all. But a witty cartoon in 2022 tells us that the baskets are all but placed on the same shelf.

Sudden risks in the future exist at any time. We need to have a sense of crisis to curb our desire for wealth appreciation, reduce our over-reliance on external professional financial managers, and take the initiative to put some assets off the shelf.