Sovereign Wealth U.S. Buying Binge May End Soon—Despite Tesla - Bloomberg

Sovereign Wealth U.S. Buying Binge May End Soon—Despite Tesla - Bloomberg:

It’s too early to call it, but the U.S. buying binge by sovereign wealth funds may end soon, according to Bank of America Corp.

Government-run funds have piled into the U.S. this decade, snapping up prime properties and stakes in hot tech companies -- most notably of late, the Tesla Inc. stake acquired by Saudi Arabia’s Public Investment Fund. Their trades were probably rewarding: U.S. economic growth hit a four-year high last quarter, unemployment is below 4 percent, and the S&P 500 Index is near a record, up more than 60 percent over the past five years.

“Investors such as SWFs and public pensions have been focused and enjoying the ride in the U.S. for the last couple of years, and certain indicators seem to still be constructive,” Woody Boueiz, global head of sovereign wealth funds at Bank of America, said in an interview. “It’s unclear what the trigger will be, but at some point I’d expect the weighting towards the U.S., and specifically certain sectors, to witness a rotation.”