Nicolai Tangen, Norway's Wealth Fund CEO, on Markets, Real Estate, AI and China

Summary

Nicolai Tangen discusses the surprising lack of market dislocation despite geopolitical risks, the deflationary potential of AI, and views real estate as increasingly attractive. He also highlights signs of stress in private markets, China's rapid innovation, and the need for diversification.

• Tangen finds the market's resilience surprising given Middle East tensions and inflation risks.
• AI is seen as a major deflationary force with significant productivity gains at NBIM.
• He sees real estate as more attractive now after a challenging period.
• Private markets show early stress signs, but NBIM is not exposed.
• Chinese innovation is accelerating, especially in applying AI, posing challenges to European companies.
• NBIM remains broadly diversified and long-term in its approach.
• Volatility is driven by policy, geopolitics, and energy prices.