In Florida, a state board chaired by Gov. Ron DeSantis recently barred investment fund managers and advisors from considering "social, political, or ideological interests" when making decisions for Florida's retirement system. In Texas and West Virginia, GOP leaders say they will block investors from state business who they claim "boycott" the fossil fuel industry. Fifteen other states are considering similar measures. And Republicans have said that if they retake Congress in the midterms, they plan to push federal legislation to curtail investment decisions they attack as "woke."
Anti-ESG Republicans say big financial firms are abusing their power to advance a liberal agenda on issues like diversity, social justice and, especially, climate change.
Many experts disagree, saying Republicans are distorting the goals and strategies of ESG investing.
It's hard for most people to get a clear read of what ESG is amid the overheated rhetoric. Is the idea to bring about social changes that couldn't be achieved at the ballot box? And what does it mean for things like your 401K when investors follow ESG principles.
This FAQ is for anyone who wants to better understand an investing trend that is becoming core to global financial markets and a new battlefront in American politics — including, possibly, in your own state.
I am not a big of ESG investing, because I think it increases risk by reducing diversification. It also encourages businesses to mix politics with sound economic decisions. While some businesses may benefit from catering and marketing to socially-conscience consumers, there is no guarantee that an ESG business will be more profitable then a non-ESG business. Businesses that are ultimately sustainable, consider social and environmental impacts of their business -- not because it drives up their stock value -- but because it's good policy.
Over the past 5 years, you would have gained nearly 20 percent more in gains, if you invested in a broad index fund like VTI (60%) rather then their ESGV (43%) fund. That's a pretty big spread. People invest to save for retirement, owning land, or whatever their financial goals are. But I just don't think politics should be involved, especially when it seems like such a self-defeating behavior that leads to reduced returns.
If you've shopped online recently, you may have had this experience: You find an item, add it to your cart, and then when you get around to paying, the price has increased.
You can thank pricing algorithms.
These are computer programs that look at factors such as supply, demand and the prices competitors are charging, and then adjust the price in real time. Now, there are calls for greater regulation at a time when these tactics are expected to become more common.
I often wonder how my friends from years past made out with their Crypto assets… 💵
I stayed away as I have a hard time believing its a sustainable investing strategy. It’s not a diversified asset, it’s not based on a physical product and it has few government regulations. So I stayed away.
Granted the people I knew years back who bought Crypto probably did pretty good if they sold it at the high point although if they got out too early or too late they probably would have not made out too well. Seems more like gambling than actually a long term investing strategy. Boring and understandable is good when it comes to money.
I’m also more than a little bothered by the amount of natural resources – electricity, fossil fuels and electronic waste that goes into making the currency grow. The idea that so much resources going into essentially useless mathematical computations seems like such a waste. While many economic activities actually produce real value to real people, Crypto mining just solves useless math equations in the search of monetary growth.
The Federal Reserve announced Wednesday it would hike interest rates this month at the fastest pace in nearly 30 years after a discouraging May surge in inflation.
The Federal Open Market Committee (FOMC), the panel of Fed officials responsible for setting interest rates, said it would raise the bank’s baseline interest rate range to 1.5 to 1.75 percent, an increase of 0.75 percentage points.
It is the first 0.75 percentage point rate hike issued by the Fed since 1994.
Friday’s inflation report delivered an unwanted surprise for the White House, Federal Reserve and investors.
While many economists and some administration officials had expected prices to show some signs of cooling, they got the opposite: a re-acceleration in price growth that makes it more likely the Fed is going to have to slam the brakes on the economy as it looks to slow the fastest pace of inflation in 40 years.
As one left-leaning think tank put it, the report was “pretty ugly.”
Like it or not, the world of five dollar a gallon gas is upon us. It’s been that expensive in some Midwest and Western states for a while now but it’s finally come to roost in New York State and about half of the rest of the state’s in America.
It often makes me feel like the world is closing in a bit on me, that everything is further drive away then it used to be. While it’s rare that I do much motoring around town, it makes me want to carefully pick and choose when I really want to head out of town or to the supermarket for a big shop, which buys less and less these days as I try to stretch it out more days.
In the grand scheme of things gas prices aren’t that big of a drain on my bank account. Yes, gas is a big portion of my road trips camping in the back country but food and beer are also big costs as are repairing broke equipment and my truck. But it’s not like I’m spending money on hotels or fancy attractions. The swimming hole in the woods is still free and my parents get me a state park pass each year.
Still it bothers me every time I put gas in my truck and see the big numbers on the pump, like a $115 for a full tank on my gasser truck. Or how even the very basic necessity products at Walmart come with bigger and bigger price tags. It’s not that I’m not making more money these days – but you would hope that extra money would be available to invest for a better tomorrow.
I’ve always thought that the reason for earning more money was to have more to save and get closer to future goals. Even COLA adjustments I’ve always tried to put mostly towards boosting further savings and investments. But with inflation and expensive gas, the old ways of always dumping more money into the markets might not be possible. It’s a bit frustrating.