Part 3/7:
Sovereign wealth funds are state-owned investment funds that typically invest in various financial assets – from traditional stocks and bonds to real estate and hedge funds. Their primary purpose is to build wealth that can mitigate the impacts of economic stress, especially during challenging times like the ongoing recession in the United States, characterized by high inflation and economic uncertainty.
As an example, Alaska operates the Alaska Permanent Fund, which utilizes revenues from its petroleum resources. This successful model serves as a reference as the U.S. government embarks on the creation of its own sovereign wealth fund, aiming to invest in significant national projects that benefit all Americans.