It is possible that global stock markets will face a major crisis through the direction of pension funds and sovereign wealth funds to exit from the stock market and withdraw 200 billion dollars during the third quarter. Balance their investment portfolios, and this quarterly adjustment may be the worst since the spread of the Coronavirus
According to Arabiyanet, a report by Morgan Stanley explained that these figures include the US retirement plans portfolios, the Japanese government pension investment fund, and the Norwegian wealth fund.
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The report explained that this negative rebalancing flow becomes more problematic due to the sharp decline this month in the stock market.
and institutions adjust their portfolios every quarter to maintain target asset allocation ratios.
The global stock index has risen by about 10% since the end of June, surpassing the return on fixed income instruments, and the need for more funds appears to adjust its investment mix to preferred ratios .
These revisions are one of the many risks facing the stock market, after a strong jump from the lows reached in March and stopped this month.
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and indicated that the decline in the stock market and risks during the coming weeks, may provide an opportunity to buy.
(Amazon fun knowledge)
