Finnish pension fund doesn’t trust in Trump’s America

Finland's Varma Mutual Pension Insurance Company— the country's largest pension fund— told Bloomberg it has reduced its exposure to stocks by five per cent, most of that reduction coming from U.S. stocks.

"It seems as if there is no president in the U.S.," Varma CEO Risto Murto said. "If I look at what is the moral and practical power, there is no longer a traditional president."

“If I look at what is the moral and practical power, there is no longer a traditional president,” Murto said. “The lesson from 2008 is that if we have a problem in the U.S., then we all have a problem.”

Specifically, he pointed to Trump’s response to Charlottesville as a “breaking point if you look at how business leaders reacted.” The fund cut its equity weight by 5% in the second quarter, Bloomberg reported, raising cash mostly by trimming U.S. stocks.

Separately, Trump is meeting for the first time with Finland President Sauli Niinisto on Monday at the White House.

A number of prominent analysts in the U.S. have come out to argue that the country's economy is showing signs of a downturn ahead.

Analysts at HSBC, Citigroup and Morgan Stanley all warned recently that the traditional relationships between stock, bond and commodity markets are beginning to break down, a sign of a market correction ahead.

Varma's investment chief, Reima Rytsola, told Bloomberg that some of the reduction in stock holdings is profit-taking after a very good run over the past year or so.

"It's natural that it will halt a little bit," he said. Though the U.S. economy is "still doing OK … we are worried," he said.