World’s Biggest Wealth Fund Draws Dot-Com Parallel With ESG
The analogy suggests that stocks and bonds touting environmental, social and governance credentials might be in for a correction in the short term, but have significant potential in the longer term-
Nicolai Tangen, who’s been chief executive of Norway’s $1.3 trillion wealth fund since September, says worrying about bubbles comes with the job. But he also suggests that today’s frothy prices for climate friendly assets might reflect their longer-term potential, as was ultimately the case with tech stocks.
“What is interesting is, if you compare the situation now with, for example, the situation before the year 2000, then the stock market was right that technology companies were going to do well in the future,” Tangen said in an interview on Thursday. “But the valuation went a little high, so it came down again, but the technological development continued.”