Just as the Uber and Lyft drivers probably shouldn't buy the IPOs (nor should anyone else but that's a different story) because having your investments in the same area you derive your income is just so risky.*
From the Financial Times:
Big groups reprieved as government recommends divestment from upstream producers
Norway’s $1tn oil fund should sell out of upstream oil and gas producers, according to a recommendation from the country’s government that has sent shockwaves through the energy sector.HT: the FT's natural resources editor
However, the world’s largest sovereign wealth fund has given a reprieve to the global oil majors, with the decision to focus divestments on companies that solely explore and produce oil and gas rather than large integrated groups such as BP and ExxonMobil. Norway’s oil fund owns about $37bn in oil and gas shares, raising fears in Oslo over the impact of a sustained fall in energy prices to the Norwegian economy....MUCH MORE
*From a 2013 post "PIMCO Is Getting Into the Managed Futures Business":Big news. Norway recommends sovereign wealth fund divest from oil and gas https://t.co/fsrVPSUcUF via @financialtimes— Neil Hume (@humenm) March 8, 2019
...A couple years ago I mentioned to a friend one guy's approach to dampening the sine wave of risk:Related at the FT:
...During the dotcoms I knew a fund sub-adviser who would take his bonus checks and buy equity-indexed-annuities with a 3% annual guarantee, not to annuitize but for the accumulation.That could be what's going on here, an asset class that might move contrary to the bond biz or it might just be more assets under management.
He's probably beaten 90% of active managers over the last decade although I don't know if that would preserve real principal over the next ten years.
His specialty was biotechs and he wanted to reduce the semi-varience of his life....
