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The chief executive of Norway’s sovereign wealth fund, the world’s largest, is warning of the potential for an inflation shock that would hurt both stocks and bonds, according to a report by Bloomberg News on Wednesday. Given extremely low bond yields and high stock valuations, “any major change in inflation will hit both parts of the portfolio,” CEO Nicolai Tangen of Norges Bank Investment Management, which manages Norway’s $1.4 trillion sovereign fund, told Bloomberg Television in an interview.
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