Stock markets are not expected to continue to rise in the way they have in recent years as there is a lot of uncertainty and a "completely different geopolitical situation", the CEO of Norway's $1.7 trillion wealth fund has said.
"When you look at how the fund has developed, it looks fine... But this will not carry on this way," Nicolai Tangen told a press conference.
"This is not how stock markets work in the long-term. There is a lot of uncertainty in the world and we are in a completely different geopolitical situation."
He later added: "There are more risks to stocks markets now than there was before."
His comments came as the Norges Bank Investment Management posted a profit of 1.48 trillion Norwegian crowns ($138 billion) in the first half of the year as global stock markets rose.
The fund's equity portfolio saw a return of 12.5% in the period from January to June, while its fixed income and real estate assets incurred losses of 0.6% and 0.5% respectively.
"The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence," CEO Nicolai Tangen said in a statement.
The fund's 1.28% stake in Microsoft was the single most valuable holding, worth 453.8 billion crowns at the end of June, followed by a stake in Apple valued at 390.8 billion crowns and Nvidia at 377 billion crowns.
While the fund's overall return was 8.6% in the first half of the year, it slightly underperformed its own benchmark index.
The fund, which invests the Norwegian state's revenues from oil and gas production, is one of the world's largest investors, owning on average 1.5% of all listed stocks worldwide. It also invests in bonds, real estate and renewable energy projects.
Its small portfolio of unlisted renewable energy infrastructure posted an 18% loss in the first-half of 2024, it said.
