Norwegian Sovereign Wealth Fund issues dual warning: If the AI bubble bursts, assets could shrink by 35%, and the threat of geopolitical conflict could rise as high as 37%.

Norway's sovereign wealth fund (with a size of 2.1 trillion dollars) CEO Nicola Tangen has warned that the dual combination of the artificial intelligence bubble and political risks of GEO Group Inc has become the biggest threat facing the global market. The fund has listed the artificial intelligence bubble as a major risk scenario - if the bubble bursts, it could lead to a 35% decrease in value for the world's largest sovereign wealth fund. The political risks of GEO Group Inc, including global investment restrictions and stringent tariff policies, could potentially cause a value loss of up to 37% in the worst-case scenario. "Stability has never been as fragile as it is now," Tangen emphasized at a conference in Oslo. He specifically pointed out that real risks always come from events that are "unexpected and not included in the scenarios". Tangen noted that in the short term, he is most concerned about "inflation pressures and supply chain disruptions related to conflicts in the Middle East". This statement comes after a warning issued by an expert group earlier this year - the group specifically highlighted the political risks in the United States and the issue of high concentration of technology companies. As the world's largest sovereign wealth fund (with a size of 2.1 trillion dollars), over half of its assets are allocated in the US market, with major holdings including NVIDIA Corporation (NVDA.US), Apple Inc. (AAPL.US), Microsoft Corporation (MSFT.US), and Alphabet (GOOGL.US) among other tech giants. The fund adopts a strategy of "index tracking + active management", strictly adhering to benchmark indices set by the Norwegian Ministry of Finance while also allowing room for active investment decisions. The fund was established in the late 1990s with the aim of converting Norway's oil and gas revenues into long-term investment returns. It currently has a massive investment portfolio covering around 7,000 listed companies in 60 countries, equivalent to holding approximately 1.5% of global equity assets.