There was an article in the Wall Street Journal this week discussing the approximately 5-fold rise of Sovereign Wealth Fund assets off the back of rising oil prices over the past decade. Now that oil prices have fallen from over $100 per barrel to the mid-$30’s, most countries have begun tapping their funds to fill the budgetary shortfall from lower oil revenue. Only time will tell how much of a headwind this could create for asset markets if these funds are forced into further selling.
Merry Christmas and Happy Holidays!
-Nick
