WEF 2025 – Head of the world's largest sovereign fund: "The entrepreneurial spirit is returning to American business leaders."

Inflation triggered by tariffs imposed by the U.S. following President Donald Trump's arrival is one of the biggest market risks in 2025, stated Nicolai Tangen, CEO of Norges Bank Investment Management, at the World Economic Forum in Davos, as reported by CNBC.

Higher interest rates, geopolitical tensions, concentration in U.S. stocks, and a high level of government debt are also risks being monitored by Norway's vast sovereign wealth fund, Tangen added.

“The animal spirit” is returning to the U.S. with Trump’s comeback, he noted. 

Tangen identified the concentration of American stocks in large tech companies as a primary risk, which he claimed has “never been greater than today.”

However, the CEO added that, “purely financially,” the return of Trump will be “very positive” for many American companies.

“With many of these policies, we do not agree, but if we look at it solely from a financial perspective, as a financial investor, it is overall very exciting. You know, we have more than half of our assets invested in America. And when we talk to American CEOs, and we talk to many of them, we really see that this animal spirit is coming back,” he added.

“I don’t think I should give any advice to the U.S., but if you look at the risks for financial markets, I believe inflation is definitely one of them, and it is all driven by tariffs,” Tangen said.

Tangen heads Norway's grand sovereign wealth fund, which reported a profit of $138 billion in the first half of last year, primarily due to investments in tech stocks.