Whats a sovereign wealth fund?
A sovereign wealth fund is a government entity that serves to invest its country’s money. Despite the turmoil in U.S. markets, sovereign wealth funds have continued to invest in the American economy. In recent weeks, they’ve continued buying Treasury bills even as the yield on those bills has dropped nearly to zero. “That’s sort of a startling data point,” says analyst Rachel Ziemba of RGE Monitor. She explains that nations desperately need a place to put their money — the same way ordinary citizens need a place to stash their paychecks. As nations have been scared away from American stocks, they’ve turned to choices like Treasury bills. What about private investors from other countries? In recent months, private investors have begun to put more of their money into emerging markets, nations like Brazil, Russia, India and China. Some of the investors left the American market in search of banks and companies that would give them greater control in exchange for investment. Others have sim
