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How to think about your 401(k) and navigate a volatile market, according to experts

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Well, I just checked your 401(k) and it doesn’t look good. In fact, it looks really terrible.

But don’t worry, you are not alone.

With a bond market experiencing one of worst years In history and the S&P 500 is down more than 24% since January, most US investors are feeling the pain.

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and as predictions for a file impending recession-or “something worse”– They keep pouring in from Wall Street, even the most seasoned investors are pressing the doors.

With that in mind, luck Connect with a few of the top wealth managers for some advice on the best way to navigate these treacherous markets and preserve your 401(k) value. This is what they had to say.

“Keep calm and invest in”

The number one mistake most people make when they see big losses in their retirement accounts is to rush into a sale.

Everyone has heard the old adage, “Buy low, sell high,” but in practice, this can be easier said than done.

“While financial advisors everywhere herald ‘buy low, sell high’, investor sentiment will tempt opposite behaviour,” said Kimberly Nelson, an advisor at wealth management firm Coastal Bridge Advisors. luck. “It can be hard to ignore the desire to do something to stop the carnage in your retirement account during a market downturn, recession, or full-blown bear market.”

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Nelson believes investors should avoid dumping their 401(k) holdings at this point because stocks have already fallen more than 24% this year, and the timing of market entry and exit can be a challenge.

“Usually taking action after a market crash does very little to protect the nest egg,” Nelson said. “Exiting the market means you have to be right about the point of exit and again about the point of re-entry — market timing is always a tricky task and not the right strategy for building long-term wealth.”

The Chartered Financial Analyst, who has worked as a financial advisor for more than two decades, had a simple tip for people worried about a 401(k): “Keep calm and invest!”

“[K]She said that taking the right perspective and taking the right actions can help ease the emotions of investors on this difficult journey. “Don’t worry about the daily fluctuations in your portfolio – consider your long-term goals and understand that time and time again, the market has proven its ability to rise from the ashes (and beyond) over time.”

Nelson argued that investors, especially younger investors, should focus on finding high-quality stocks at reasonable prices as the market falls, rather than selling to try to prevent further losses.

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“I think buying today is better than it was eight months ago, and if you’re a long-term investor, buying quality names at today’s prices and continuing to add to your portfolio every month can put you on the path to great success,” she said.

Cameron Starr, wealth advisor at Gratus Capital, echoed Nelson’s comments.

“We think it is important to resist responding to markets by selling and going cash,” Starr said. luck.

He believes that the stock and bond markets will eventually recover from their low year, which means that most long-term investors will never realize the current losses on their 401(k) properties unless they sell now.

Furthermore, he noted that those who sell shares to hold cash are not only hurt by the market downturn – they also lose about 8% of their money to inflation, and 401(k) losses. can not be used to offset taxes.

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tax authority It will also set a 10% penalty on any money withdrawn from a 401(k) account before age 59.5, which can be expensive.

While it’s stressful to see an asset drop, you have a “forced” plenty of time and potential recovery for those assets. Leave your portfolio time for potential recovery, and if you have the ability to continue investing with any excess cash, do so,” recommended Starr.

Tips for retirees

For those nearing retirement, the plunging of the stock and bond markets can be especially devastating.

Starr of Gratus Capital said it makes sense to reassess your risk tolerance as you approach retirement, arguing that it might be wise for older Americans to invest more conservatively.

Recommended looking at Target date funds That automatically reduces portfolio risk as retirement approaches. For someone planning to retire in 2045, for example, a target date fund invests in a higher-risk portfolio that offers more opportunities for long-term gains early on. Then, as the years pass, the wallet will automatically reset to a less risky allocation.

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But for retirees worried that the market will continue to drop, and looking to protect their savings now, Morgan Stanley Wealth Management shared some tips this week.

“Consider using bond market volatility to drive strong short-term returns while we wait for the end of the stock market highway,” Lisa Chalet, chief investment officer, wrote in a research note Monday.

Yield on US Treasury for one year Bonds rose more than 4% on Wednesday. This is more than 10 times higher than in January. Shalit said investors can protect some of their retirement savings from inflation and stock market losses by using short-term bonds like this one.

Positioning for a volatile market

While wealth management experts believe you should never withdraw money from your 401(k), and most recommend not cutting your contributions even if the market is going through a down year, many investors still decide that’s enough.

a Morgan Stanley’s new survey It found that 31% of Americans plan to reduce contributions to their 401(k) plans this year.

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If you’re in that camp and have a little extra money to invest this year after reducing your 401(k) contribution, Mark Heffel, chief investment officer at UBS Global Wealth Management, has detailed some tips to help you make the most of your volatility. Markets in a research note Wednesday.

First, it recommended greater exposure to stocks of value — or stocks that are trading at low prices based on fundamentals like revenue, earnings, or net income compared to their peers.

“The combination of high inflation and high interest rates tends to favor the allocation of value equities versus developing stocks,” Hefele wrote.

According to UBS research, value stocks outperformed growth stocks by more than 4 percentage points in the 12 months following the Fed’s final rate hike in previous business cycles. With inflation showing signs of peaking, many experts believe the Fed may do so pause Their price increases later this year or early next year, creating valuable stocks for a strong rally.

Second, Heffel recommended investors look to energy stocks for short-term gains, as he sees oil prices above $110 a barrel by the end of the year, which should support an “extra rally” with these names.

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The CIO went on to say that investors may also consider adding “defensive exposure” from consumer stocks and “safe haven” currencies such as the Swiss franc.

Finally, he said that “uncorrelated hedge fund strategies” are likely to outperform the broader market going forward, and said investors can use funds that combine multiple hedge funds, such as HFRI Macro . FundTo get to know the industry.

High inflation and a high rate environment have moved stocks and bonds together, both of which are down year-to-date. But this challenging environment of “traditional” diversification has favored hedge funds, specifically macro funds, which are able to take positions across markets, instruments and asset classes in order to navigate shifts in the macro environment and increased uncertainty,” Hefele wrote.

Avoid anxiously checking your account balance

It can be hard not to look at your 401(k) when your account balance seems to be shrinking every day, but experts argue that checking your balance frequently can lead to poor decisions.

“In my opinion, there is no value in looking at your account on a daily basis,” said Coastal Bridge Advisors’ Nelson. luck. “I don’t think you should even watch it on a weekly or monthly basis. Long-term assets should be reviewed at most once every three months. Watching the 401K drop every day the market swings can make you more vulnerable to the emotional decisions you are trying to avoid.”

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Elon Musk is allowed to fail as black female leaders must be exemplary

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In middle school, my mom made me dress my Sunday best for a Saturday morning summer camp meetup. I wore a purple Easter dress, a purple cardigan, and had my hair pulled back and styled to perfection. I brought out my “portfolio” (aka the blue three-ring binder where my dad kept all my report cards, perfect attendance awards, and other certificates of merit), and answered all the questions as politely as a 10-year-old could.

Granted, it was a camp of “leaders and scholars” led by a local private college (which would eventually become my alma mater), but by sixth grade, I had already internalized that I had to always be professional, punctual, and in every perfect setting lest I underrepresent my entire race. Twenty-five years later, and I still feel that way sometimes, that I’m writing a book about my experiences with the appropriate title Stop waiting for perfection.

So last week when I saw this tweet Around Sam Bankman FriedCo-Founder and Former CEO of Cryptocurrency Exchange (W The alleged Ponzi scheme) FTX, in his “dirty socks sticking out in his sneakers,” I couldn’t help but laugh. A black woman can never.

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The sentiment reminded me of another tweet about Twitter’s new CEO, Elon Musk, and imposter syndrome.

Again, a black woman can never. Black women rarely get a first chance, let alone a second chance, and when we are promoted to positions of leadership it is often without the resources we need to succeed.

said Kira Kells, CEO YR Mediaat recent days luck interview about The black woman and the glass shelf. “A lot of times you’ll see serial leaders or entrepreneurs doing something, and it might not go perfectly, but they’re still allowed to fight another day, try something else, go into a different industry. Meanwhile, if we do that, it’ll be Painting it as a failure, paints a negative picture of the person who comes after us.”

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And the news has recently been filled with examples of these failed white men, or Billionaires behave badlyAs writer Jenna Schooner calls it. Musk and SBF are just two examples. Peloton founder and former CEO, John Foley, was expelled from the role In February after the company’s value plummeted from pandemic heights. Recently announced Ernesta New carpet companywhich raised $25 million. And then there’s Adam Neumann, founder of WeWork, who exploded spectacularly in 2019, when the company failed to go public. This year, he was brought up 350 million dollarswhich is more than all the funding the Black founders raised combined in the second quarter of this year.

And let’s not forget Elizabeth Holmesthe former founder of blood testing company Theranos, who was recently sentenced to 11.25 years in federal prison for defrauding investors.

Why am I going back to guessing my accomplishments again?

Earlier in my journalism career, a manager once told me to have the confidence of a mediocre white guy. At the time, I was making a career change in communications and was wondering what number to bring up during salary negotiations. I didn’t understand my boss’s advice at the time, but after the 2016 presidential election, it all clicked.

Arguably the most qualified candidate our country has ever seen, and yet she loses out to a white man who is too loud, too rich, and too unqualified. It reminded me of that popular saying “You have to work twice as hard to get half that money” that’s been passed down from generation to generation in black families, except this was a well-connected, wealthy white woman we were talking about. So what hope was there for me, a young black woman?

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“Black women are often taught through experience and observation that it is not enough to be ‘good.’ We often have to be excellent even in the room. Even then, Black women may still be treated as inadequate by their peers,” explains Dr. Lincoln Hill, licensed clinical psychologist and founder Liberation and Wellness Center. “I envision the concept of ‘working twice as hard to get half of what’s developed’ as a strategy for survival and the recognition that excellence won’t fully protect us or give us what we’ve earned. It’s dehumanizing, but for most of us it’s the reality.”

It’s a phenomenon Hill wrote about in her 2019 article for Zora Magazine On why imposter syndrome is worse for black women. The term was first coined in the late 1970s by clinical psychologists Pauline Clance and Susan Eames. Impostor syndrome It is described as “the voice in people who believe they are not smart, capable, or creative despite evidence of high achievement.” However, Clance and Imes’ research focused largely on white, college-educated women who were middle-to-upper class, and failed to account for gender. And the A racial component to the imposter syndrome that black women often experience.

“Black women are at the intersection of gender and racial oppression. As a result, many successful Black women work in academic and professional environments that devalue and devalue them,” says Hill. “It’s easy to feel like a fraud when people are constantly treating you like a fraud despite your successes. Many (certainly not all) black women may start to wonder if this is the problem, and they may try to “fix” this by working twice as hard as The others. In fact, the problem is the society that devalues ​​us.”

Dr. Raquel Martina psychologist and assistant professor at Tennessee State University, goes one step further and replaces imposter syndrome with the phrase “racism-related stress” as it relates to black people.

“It makes sense to feel like a fraud in an unwelcome environment,” says Martin on the Instagram Reel. “So if I’m in a racist environment, if I’m in a sexist environment, if I’m in an oppressive environment, I think that makes me feel like a fraud. Or am I just my reaction and my appropriate response to racism and oppression and discrimination based on sex, color, and texture?”

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To combat feelings of impostor syndrome, Hill recommends creating and participating in support spaces with like-minded individuals who are able to remind you of your worth and your inherent worth outside of your external accomplishments.

“It’s important to build your critical awareness and awareness of how oppression plays out in your life and the lives of other minority groups,” she says. “How do systems like racism, capitalism, sexism, etc. affect your self-perception? What have these systems taught you about your own value and the value of others? How do these systems affect your self-thinking and expectations?”

In the past, Hill said she would recommend people keep a record of their professional accomplishments to remind themselves of all they’ve accomplished. But she has since abandoned the practice because she feels doing so subtly reinforces the idea that our worth is attached to what we do.

“These days, I focus more on helping people separate the messages they’ve learned from merit and achievement,” she says. “Are you still worthy if you are not ambitious? Can you still find value in yourself and others without using accomplishments as a yardstick?”



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Saudi Aramco Refining Company hires banks to sell shares worth $1 billion

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(Bloomberg) — Saudi Aramco Base Oils, a refining unit of the state-owned oil producer, has named banks including Citigroup and HSBC Holdings Plc in its initial public offering on the Saudi stock exchange, which could raise about $1 billion.

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The company, also known as Luberef, plans to sell 50 million shares, or approximately 30% of the shares, according to a statement. The price at which all offer participants will buy the shares will be determined after the book-building period.

The Company has hired SNB Capital as Principal Director, Financial Advisor, Bookrunner, Global Coordinator and Underwriter. It also appointed Citigroup Saudi Arabia, HSBC Saudi Arabia and Morgan Stanley Saudi Arabia as financial advisors, book managers, global coordinators and underwriters.

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The bidding period for participating parties and the record-building process begins on December 4 and lasts for six days, according to the company’s prospectus. The subscription period for individual investors opens on December 14th for a period of two days, and the announcement of the final allocation of the Offer Shares will be no later than December 22nd.

Saudi Arabia’s Capital Market Authority approved Luberef’s IPO plan last week.

The refining business, which operates in the Saudi industrial cities of Jeddah and Yanbu, is 70% owned by Saudi Aramco, with Jadwa Investment Company owning the rest. The offer consists of Jadwa selling its shares in Luberef, while Saudi Aramco will retain its stake. Bloomberg reported in June that the bid could raise about $1 billion.

The energy-rich Persian Gulf has been one of the world’s IPO hotspots this year, accounting for nearly half of the proceeds from new stock listings across Europe, the Middle East and Africa. While stock sales dried up elsewhere amid sharply rising interest rates, Middle Eastern indices benefited from higher oil prices. Saudi Arabia alone saw a record 27 initial public offerings this year, according to data compiled by Bloomberg.

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Jadwa acquired Luberef Holding Company in 2007 from Exxon Mobil Corp. Exxon originally invested in the refinery in 1978.

Luberef operates two production facilities in Yanbu and Jeddah on the west coast of Saudi Arabia. It produces various base oils and by-products including asphalt, heavy marine fuel oil and naphtha. They are mainly sold throughout the Middle East, North Africa and India. They also sell throughout Asia, the Americas and Europe.

demand for forecasts

Global base oil demand is expected to grow by about 5 million metric tons between 2022 and 2030, according to a company statement. “The base oil demand outlook is further supported by strong macroeconomic fundamentals in Saudi Arabia and the broader Middle East region, which are major end markets for Luberef.”

“Luberef will continue to focus on achieving growth in key end markets, particularly where market dynamics present an attractive demand outlook,” Tariq Al-Naim, President and CEO of Luberef, said in the release.

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Financial indicators

– With the assistance of Dana Khreish.

(Updates with IPO underwriting dates in fourth paragraph, financial highlights)

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Warning: SPFI runs a high risk of cutting its profits

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Warning: SPFI runs a high risk of cutting its profits

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