Blackstone, a $100 billion company, has experienced a “bank run” on its illiquid asset fund, leading to the company imposing withdrawal limits. This has caused worry in the market, particularly in the real estate sector, with increasing fears of a recession on the horizon. However, some investors are seeing the potential for cheap real estate deals in the coming year. In response to market turbulence, YouTuber Sam recommends dollar cost averaging and shares his best-performing dividend and income growth portfolio. The November jobs report showed a rise in payrolls of 263,000, but the markets have turned down on the news.
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Navigating Turbulent Times: Blackstone Bank Run and November Jobs Report
Introduction
How’s it going everyone? It’s Sam, and today we have news of a bank run on Blackstone. I want to discuss this situation and how we can navigate these turbulent times.
The Blackstone Bank Run
This isn’t a traditional bank run, but rather a withdrawal of assets in a highly illiquid fund. Blackstone is a hundred billion dollar company and they can’t allow these withdrawals to continue. The fund in question has a redemption limit and has hit its five percent quarterly threshold.
This fund has performed well over the past three years with annualized returns of 15.5 percent and a distribution rate of 4.4 percent. This fund is only available to high net worth individuals and family offices, and they’ve seen over two percent of their net asset value withdrawn this month. Blackstone is selling some properties to Vichy for a profit, but there is still fear in the market.
November Jobs Report
In other news, the November jobs report showed payrolls rising by 263,000 with an unemployment rate holding at 3.7 percent. Initially, this seems like good news for the economy, but it could give the Federal Reserve more reason to continue raising rates. Average hourly earnings are up 0.6 percent versus 0.3 percent expected, which is not great news for the job spiral or the wage price spiral.
Market Turmoil and Dollar Cost Averaging
The markets have turned down on this news, and we are currently hitting an important level. Unless we come back up a few percent, it looks like we are in the middle of being rejected again, and we might see lower lows like we’ve seen in the past. Dollar-cost averaging can help navigate this kind of market volatility.
One of my best-performing portfolios is my dividend and income growth portfolio. I’ve been dollar-cost averaging this for two and a half years and I’m up 12 percent overall. I’ve put in $13,000 in that time, consistently putting in $100 a week. This is a more stable portfolio, and it will do better than high-risk assets in times like these.
Closing Thoughts
In conclusion, we’re living in turbulent times with the Blackstone bank run and the November jobs report. I encourage you to keep a level head and consider dollar-cost averaging to navigate market volatility. Also, keep an eye out for potential real estate deals in the coming year. Thanks for tuning in, and I’ll see you in the next video!
