Just over a year ago we noted that, after being forced to withdraw at least $15 billion to fund 2017 budget deficits, the $860 billion Norwegian sovereign wealth fund announced that it was going all in on the global equity bubble to try to make up the difference. The change resulted in 75 percent of the fund’s capital being allocated to global equities, up from the then current 60 percent. The central bank’s board, which oversees the fund, on Thursday recommended an increase in the equity share to 75 percent from 60 percent. That will raise the expected average annual real return to 2.5 percent over 10 years and to 3.5 percent over 30 years, compared with 2.1 percent and 2.6 percent, respectively, under the current setup. The world’s largest sovereign wealth fund said that it expects an annual return of only 0.25 percent on bonds over the next […]