worldnewsera - Madeleine Bruder- 19 Sep. 2022
The head of the world’s largest sovereign wealth fund has urged investors to stay focused on environmental, social, and governance issues, warning of a “real danger” that economic turmoil and a political backlash in the US drive them down the agenda.
Surging inflation, a renaissance in fossil fuels sparked by the war in Ukraine, and growing resistance from Republican states in the US has already cast doubt on the seemingly unstoppable rise of ESG investing, which asset managers have rushed to embrace in recent years.
Nicolai Tangen, head of Norway’s $1.2tn oil fund, told the Financial Times that “we are observing the backlash against ESG in some places in America. Despite times being volatile in financial markets and increase in the economy, we think it’s more important than ever to retain the focus on these extremely important matters.”
Norway’s oil fund, which manages the government’s petroleum revenues, has repeatedly stated that addressing ESG issues is one of the biggest levers it has in attempting to generate above-average returns. The fund is one of the biggest shareholders in the world, owning the equivalent of about 1.5 percent of every listed company in the world.
The oil fund last week held a seminar on decarbonization and net zero targets featuring 17 business leaders, including from Shell and Nestlé, as well as portfolio managers from Fidelity Investments, T Rowe Price, and Wellington Management.
“What is very clear is that if you’re a large investor with a diversified portfolio there is no way that you can run away from these problems,” said Tangen. “If you have one part of the portfolio that is polluting and destroying the environment, you’re going to be hit in another part of the portfolio.”
Investors are confronting a far more punishing backdrop this year than they expected, Tangen acknowledged. The European Central Bank and the Bank of England are both raising interest rates to combat inflation even as economic growth slows, while in the US consumers are being squeezed by higher prices.
“Last year if you had asked us, what’s the worse cast on inflation, we are beyond what we would have considered the worst case. If you said what is the worst case on energy, we are beyond that. Geopolitically we are beyond what we would have considered the worst case. So we are in a pretty bad place,” he added.
The downturn in stock markets pushed the fund to its largest ever dollar loss in the first half, as it fell 14.4 percent.
Nonetheless, he stressed: “We must not forget decarbonization in this environment.”
Alongside the acute inflationary and geopolitical pressures, ESG investing has come under fire from Republican lawmakers who say that the agenda has gone too far and risks jobs linked to the fossil-fuel industry.
Several Republican-controlled states have sought to stop asset managers from ESG investing and threatened to pull funds over the perceived hostility of some fund managers to the fossil fuel industry.
Norway’s oil fund will unveil its new climate action plan on Tuesday after the government approved a proposal that its responsible investment is based on a long-term goal of pushing companies towards net zero emissions.
The oil fund has started voting against the entire board in companies that fail to manage climate risk properly, according to Carine Smith Ihenacho, chief governance and compliance officer at the oil fund.
She added: “What we want to convey is how important it is for investors like us to really think long term and continue to push companies in the right direction.”
- Calm when things are troubling
As recently as 21 February, the Oil Fund was worth NOK 10,800 billion on paper. But the coronavirus has turned growth into decline and shown that the values Norway has saved up in international markets can be fleeting.
How To Survive A Recession (Without Burning Through Savings And Selling Off Investments)
Worldnewsera - Madeleine Bruder - 18 Sep. 2022
- We aren’t officially in a recession yet, but we’re likely heading towards one, many economists are predicting a 2023 recession.
- With a little preparation, you can be financially ready if the economy officially enters a recession. Build up your emergency fund, work on your resume, and start diversifying your income.
- Many industries are recession-proof, and there are new opportunities that will open up as a result of the economic slowdown despite the short-term pain.
Many experts fear that an official recession is right around the corner. With inflation still rising, the Federal Reserve will likely raise interest rates to slow down the economy even further. If the economy slows down enough, we could easily enter a proper recession. A recession can cause a lot of pain for many folks, from the labor market to the stock market.
As stressful as the thought of a recession is, it’s important that you don’t panic. This is just part of the economic cycle. While the discomfort of a recession will be felt by most of us, there are ways to prepare. In this article, we’ll look at how you can survive a recession, so you can feel more confident about your finances as the economy continues to send us all mixed messages.
How does a recession impact you?
Many people are wondering how a potential recession could impact them personally. A recession is an extreme economic slowdown.
A recession could lead to a job loss or issues with employment (no bonus, reduced compensation, and so on) since companies have to adjust to a decrease in consumer spending. With less money in the economy, there’s less demand for luxury items, and people think twice before spending any money beyond the necessities.
The worst-case scenario for a recession is that unemployment could drastically increase. The Fed slows down spending, hiring, and wage gains by raising the cost of borrowing money. This means you could completely lose your income or have financial incentives taken away at work. This isn’t encouraging news, but we can’t ignore the reality of the situation.
The good news is that this economic cycle has not been officially called a recession just yet. Some would argue that it’s a stagnant economy and that a recession is approaching. That just means that you have to be prepared for the worst-case scenario, as there’s no telling how the battle against inflation is going to turn out.
How do you survive a Recession?
There’s no sense in sugarcoating the impact of a recession because we’re all feeling the effects of rising costs already, from everyday purchases like food to mortgage rates.
Here’s how you can survive a recession financially.
Start preparing for a potential job loss.
It has been made clear by representatives from the Central Bank that rate hikes could lead to economic despair in the form of job loss. We don’t want to fearmonger, but even though the labor market has been resilient, it’s important to consider the possibility that you could lose your job if you’re not in a recession-proof field. Companies will have no choice but to make layoffs if they’re not generating enough revenue.
What this means is that you should start doing the following:
- Work on your resume. If you haven’t polished up your resume in a while, this could be the time to update it.
- Reach out to your network. This would be the ideal time to start updating your LinkedIn profile and connecting with friends in your network.
- Build up your emergency fund. You must have money saved for a rainy day. If you’re still working, you’ll want to save as much as you can just in case. An emergency fund is one of the main tools in your financial toolbox.
- Look for new opportunities. If you feel that your company may go through layoffs during this economic downturn, you’re going to want to keep your eyes open for other jobs that you could apply for.
Learn a new skill
This could be the perfect opportunity to work on learning a new skill or trying to switch careers. They say that the more you learn, the more you earn. You could use this economic downtime to focus on a new skill that could help you increase your income earning potential.
If you don’t have the resources or time to return to school, you could always consider working on an in-demand skill like writing or graphic design. Many skills bring in money even when the economy slows down.
Look for ways to cut costs
It has been said that necessity is the mother of all inventions. While there’s nothing glamorous about going through financial struggles, there are still many creative ways that you can save money to prepare yourself financially. During a recession, it’s imperative that you find ways to cut costs so that you can be prepared for a loss of income. You can start cutting costs by delaying a major purchase or getting into bargain shopping. You may want to think about chopping one fixed cost from your budget (a streaming service or any other service that you rarely use).
Try to diversify your income
One of the riskiest things that you can do during a recession is to rely on one source of income if your job isn’t in a recession-proof industry. This is your opportunity to try to apply for a side hustle or to look into diversifying your income so that you have a few sources to rely on. I personally tapped into the gig economy this summer by using apps like Rover and Airbnb to bring in some extra money to beef up my savings account. You can apply for part-time work or try something in the gig economy so that you have a few income streams to protect yourself and your family.
Don’t panic with your investments
While many investors are going to liquidate to have cash, you should think twice before selling off your investments. When you see your investment portfolio going down in value by the day, it’s going to be tempting to consider selling everything to liquidate. The problem with this is that you’re likely selling at a loss. It’s also not recommended that you dump your stocks due to fear or temporary uncertainty. If you believe in the companies or funds you’ve invested in, you don’t want to make rash decisions that will hurt you in the future.
During times of high inflation, stock market dumps occur, and people start panic-selling. The volatility leads to wild swings when there’s fear in the market. Any bit of good news or bad news could lead to immediate reactions. It’s going to be difficult to resist, but if you don’t need the money for short-term expenses, you need to do your best not to panic. Think back to the stock market fluctuations that happened when the pandemic first began. Many investors panicked and ended up losing out on astronomical gains just a few months later.
Should you still invest during a Recession?
A recession is a normal part of the economic cycle, and it’s not a valid excuse for not investing your money. Many industries are recession-proof (consumer staples, utilities, and health care, for example), and every industry isn’t impacted equally.
A recession usually features high inflation and stock market sell-offs. This means that you’re going to want to have a balanced portfolio to protect yourself. Toward that end, take a look at Q.ai’s Inflation Kit for your long-term investable funds and keep making smart, unemotional decisions with your portfolio. You can also activate Portfolio Protection at any time to protect your gains and reduce your losses.
Some economists believe that we’re due for an official recession announcement by 2023, while others feel that the economy could narrowly avoid one. Either way, you must do whatever you can to prepare your finances (and your career) for more dire straits. If we narrowly avoid a recession, you’ll be comfortable knowing that you set your finances up and you were ready to go through this challenging time.
The bottom line is for the people to regain their original, moral principles, which have intentionally been watered out over the past generations by our press, TV, and other media owned by the Illuminati/Bilderberger Group, corrupting our morals by making misbehavior acceptable to our society. Only in this way shall we conquer this oncoming wave of evil.
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