Secrecy of the investment plan

The Norwegian sovereign wealth fund (SWF), plans to invest around $2 billion (about Rs9,772 crore) in India, primarily in equities, over the next two months because it has increased India’s weightage in its investment portfolio. I have no issues with the above, except that I fail to understand what would really prompt them to make this info public. The immediate reaction of the market would be to reflect this *new information* in all the prices?!

Maybe they already have… :wink:

mwvt9 Wrote: ------------------------------------------------------- > Maybe they already have… :wink: In that case, this is clear market manipulation and veryyy illegal?

how is that market manipulation? Saying you own something is not manipulative…saying you own it and you know it is going to go up is manipulative…this is called “disclosure”

Read again: The Norwegian sovereign wealth fund (SWF), *plans to invest* around $2 billion (about Rs9,772 crore) in India, primarily in equities, *over the next two month* Now if you say that they have already invested, then they have all the incentives to lie and say that “I am going to invest $$$ in the particular stock/market.” This will shoot up the prices immediately. Don’t you think that today I silently invest in some script and tomorrow I come out with a statement that I will invest in the security to the tune of Billions is clear attempt to jack up the prices (assuming that no such plan exists)?

they are saying a country they will invest in, not a company specifically, and regardless no I dont see that as anything that means the price has to go up. Did you dump all of your money into GE or GS when Buffett said he was putting money there? No. Did it shoot through the roof? No. Whether the money is already there or going there doesnt matter, that is no basis for investment nor are they manipulating a market.

So are we back to the original question? :smiley: I mean, I agree it (probably) won’t impact the prices but why take chances? Why make the information public (even before you have invested) coz I see no incentive for the firm to do so?