Insider Monkey
Billionaire Andreas Halvorsen’s Viking Global Portfolio: Top 15 Stock Picks
Ramish Cheema
10 min read

In This Article:

In this piece, we will take a look at the top fifteen stock picks of billionaire Andreas Halvorsen's Viking Global. For more stocks, head on over to Billionaire Andreas Halvorsen's Viking Global Portfolio: Top 5 Stock Picks.

The world of investing is full of uncertainty. After all, there's no such thing as a free lunch, and trying to gauge the mood of the countless investors that make up the stock market carries with it its own set of risks. However, these moods are also often influenced by broader macroeconomic sentiments, and this factor has been true for the past couple of years as well. The stock market was dealt a major shock as investors fearful of the economic impact of the coronavirus exited the market in droves. Then, they rushed back as technology stocks boomed due to a favorable environment created by the lockdowns. However, yet again, this victory would be short lived since the Russian invasion of Ukraine and the after effects of the coronavirus led to fiscal expansion harbored in inflation and cut down the markets for growth companies.

All these ups and downs appeared to be over as 2023 set in and major stock markets were eager to rise. But, as if the stock market gods weren't happy, the latest debate about the future of the market surrounds one of the most catastrophic events to hit the American economy - if it occurs. This phenomenon, often limited to struggling developing countries, is also knocking on the doors of the U.S. - the world's largest economy and a global financial sector. This threat is that of default, and in simple terms, it implies that the Treasury Department might not be able to meet its obligations if it is prevented from raising more debt. Or, in other words, the Treasury has to borrow to spend - and there's no way around it.

The Treasury's ability to borrow is mandated by Congress - the sole governing body with authority to manage America's spending. However, Treasury itself is part of the Executive branch of America, headed by the Secretary appointed by the President. So, right now, it's back and forth between Congress and President Biden - or to be more specific, the Republican Party and the President - since the Democrats represent Mr. Biden's own party. Both sides have their own view on the debt ceiling, and the President's side released a rather ominous white paper in May 2023 where it predicted that should the U.S. default on its debt, the stock market might fall a stunning 45%.

To quote the White House:

The costs would be even greater under a protracted default. A CEA simulation of the effect of a protracted default shows an immediate, sharp recession on the order of the Great Recession. In 2023 Q3, the first full quarter of the simulated debt ceiling breach, the stock market plummets 45 percent, leading to a hit to retirement accounts; meanwhile, consumer and business confidence take substantial hits, leading to a pullback in consumption and investment. Unemployment increases 5 percentage points as consumers cut consumption, and businesses lay off workers. Unlike the Great Recession and the COVID recession, the government is unable to help consumers and businesses. As the breach continues, the economy heals slowly, and unemployment is still 3 percentage points higher at the end of 2023.

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories