sri

Time to Run?

Time to Run?

There were alarmist headlines late last week about the inverted yield curve, something that can signal an upcoming economic recession. The media is quite good at sounding alarms. The implied investor reaction is to retreat to the sidelines until the economic bust is over and get back into the market once the yield curve has developed a healthy steepness. 

 Many investors apparently thought so. The S&P 500, on Friday, dropped 1.9%, as people reacted as if a recession would happen on Monday. Wise investing is not so simple.

INVESTOR STATEMENT ON GUN VIOLENCE

INVESTOR STATEMENT ON GUN VIOLENCE

In light of continuing gun violence and mass shootings in the U.S. involving semi-automatic assault weapons, the undersigned investors representing US$634BN in assets are calling on gun manufacturers, retailers and distributors, as well as companies with financial ties to these industries, to review their operations, supply chains and policies and take meaningful action on this public safety concern.

The Anti-Gun Legacy of SRI

The Anti-Gun Legacy of SRI

The recent shooting incident at a high school in Florida, the latest in a rash of mass killings in the U.S. by a person with a readily available military assault rifle, reinforces my commitments as a financial advisor who specializes in SRI. One of the most important characteristics of socially responsible impact portfolios over the decades has been the avoidance of weapons, that is, of companies that manufacture and distribute weapons - this due in large part to SRI’s historical roots in the progressive religious community, particularly in the sensitivities and values expressed by the Quaker and Mennonite traditions (often referred to as the “peace” churches).

Correction Time : The Market Takes a Hit

    Correction Time : The Market Takes a Hit

After reaching all-time highs on January 26, 2018, the Dow Jones Industrial Average and the S&P 500 went into a two-week slide that saw both stock indexes drop by more than 10%, a decline that is typically considered a market correction.1

Analysts have been saying for several years that the long, booming bull market was overvalued and due for a correction, so the drop was not a surprise in the big picture.2 And even after the 10% plunge, the Dow was up 19% over the previous 12 months, and the S&P 500 was up 12.5%.3

It's natural to be concerned about this kind of shift, but more important to maintain perspective and focus on your long-term goals. It may be helpful to consider some of the reasons behind the surge of market volatility.

Normalcy vs. Complacency

Normalcy vs. Complacency

OK, a couple of my clients have wondered why I haven’t bothered to comment on the recent gyrations in the market. I might well have commented around February 7 when it appeared the sky was falling, but as it happened I was on vacation in St. John, one of the Caribbean islands hit hardest by last fall’s hurricanes (and happy to be there spending money, thereby helping the recovery efforts). Internet service on the island is still very sporadic, and we didn’t have any service where we were staying that week. Standing outdoors in St. John, it was nice and warm, and the sky didn’t appear to be falling at all, just blue and beautiful.

Of course, by the time I returned home the market indexes had begun to recover, and the Dow Jones Industrials and the S&P 500 ended last week up 4.3% each, their biggest gains in five years. Stocks are still off their recent record highs, but certainly things appear to have stabilized.