Sovereign Wealth Funds


#1

Hi Cliff,

I would like to suggest a policy that will enable the Government to create a Sovereign Wealth Fund (like the Government of Singapore or Dubai have) that will allow reserves to be invested in global stock markets in order to get a return. Perhaps have settings like style of investing at two extremes:

  1. conservative - where the fund has a low rate of return but low risk 5% - 8%
  2. risky - high rates of return >15%, but with high risk.

Additional variables:

  1. Invest externally - more affected by global economic cycles, boost to foreign relations, Global GDP
  2. Invest domestically - more affected by domestic economic cycles, boost to GDP

When the global economic cycle dips, a high risk investment style could reduce a portion of the reserves, where else a conservative strategy saves capital of the reserves and only affects the return for the period of the economic downturn.

thank you for creating a really fun game.


#2

Sounds like a good idea, and I shouldn’t think it’d be too hard to code.