Many emerging countries had good cash flows during the commodity boom and when oil was around $100. That excess cash was put into governmentally owned investment funds, usually called Sovereign Wealth Funds (SWF). They invested this cash around the world, much of it in stocks. That helped to boost stock markets.
Now that those areas are in deep bear markets, the countries have big negative cash flow. They call on their SWFs for needed cash. Therefore, the SWF has to sell assets, stocks, bonds, and trophy real estate. At the end of last year, the SWFs together had about $7.2 TRILLION. What was bought, will now be sold. And that creates bear markets in many asset classes.
The Kazakstan SWF even had to borrow $1.5 billion on the world’s markets.
Norway’s SWF has $830 billion because of its large oil reserves. It is now forced to sell assets.
Here you can see another huge headwind for the global stock markets. It could us very bearish, except that we have already been bearish for that and many other reasons.