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Stress Test Warns Norway’s $2 Trillion Fund Could Drop 37%

8/12/2026

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Summary

Story summary

Nicolai Tangen warned that the $2 trillion sovereign wealth fund could disappear in a market collapse.
He said a fragmented-world stress test would cut 37 % ($740 billion) of its value, likening the risk to the 1929 crash.
The fund now funds a quarter of Norway’s public spending, up from about 10 % ten years ago, after rising 15.1 % in 2025 but slipping 1.9 % in Q1 2026 as U.S. tech stocks fell.

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Story summary

Nicolai Tangen warned that the $2 trillion sovereign wealth fund could disappear in a market collapse.
He said a fragmented-world stress test would cut 37 % ($740 billion) of its value, likening the risk to the 1929 crash.
The fund now funds a quarter of Norway’s public spending, up from about 10 % ten years ago, after rising 15.1 % in 2025 but slipping 1.9 % in Q1 2026 as U.S. tech stocks fell.