ESG - Everyone is talking about it!

Tavistock Wealth - 21st February 2020

 Ironically, the turning point may have been President Trump’s withdrawal from the Paris Agreement on climate change in 2017 that set the tidal wave of “doing the right thing” in motion.

ESG is no longer a side project designed to window-dress political and corporate correctness, but the new cornerstone of a remarkable sea change in financial markets that has increasingly influenced the direction in which leaders drive their operations. The ESG policy initiatives taken by the World Economic Forum in Davos-Klosters, COP26, European Commission, European Central Bank, BlackRock, Goldman Sachs and the Bezos Earth Fund are a few examples of the level of commitment to this global cause. Betting against this trend is no longer socially or financially acceptable, just ask the hedge funds that had been short Tesla shares!

See aside for our Chief Investment Officer’s most recent CNBC appearance in which he discusses ESG investing.

ESG is no longer a side project designed to window-dress political and corporate correctness, but the new cornerstone of a remarkable sea change in financial markets that has increasingly influenced the direction in which leaders drive their operations. The ESG policy initiatives taken by the World Economic Forum in Davos-Klosters, COP26, European Commission, European Central Bank, BlackRock, Goldman Sachs and the Bezos Earth Fund are a few examples of the level of commitment to this global cause. Betting against this trend is no longer socially or financially acceptable, just ask the hedge funds that had been short Tesla shares!

See below for our Chief Investment Officer’s most recent CNBC appearance in which he discusses ESG investing.

This investment Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person. Source of data: Tavistock Wealth Limited.

Want to know more about the Equity Markets?

Please contact us here:

4 + 10 =

Recent blogs
Green Finance Summit 2021

Green Finance Summit 2021

Our Portfolio Manager for ESG, James Peel, was recently invited to provide his valuable insights into “Innovating Towards a Greener Future” as part of the London School of Economics Student’s Union Green Finance Society’s video conference: “Green Finance Summit 2021”.

read more
The Great Rotation

The Great Rotation

In Nothing Is More Powerful Than An Idea Whose Time Has Come, published in November, we introduced the idea of a Great Rotation across US equity markets. As shown in the chart below, this rotation is playing out in textbook fashion with value stocks outperforming growth by about 20% since the end of last year.

read more
Reflections

Reflections

This is the first blog since the holiday break. Whilst travel restrictions meant it wasn’t the holiday that had been planned, we adapted, and enjoyed the opportunity to spend some time together as a family and reflect on the last few months.

read more
Canary in the Vol-Mine

Canary in the Vol-Mine

With the US election just 8 days away, financial markets are following the polls and pricing in a Biden win. The prospect for a Democratic clean sweep has contributed to the rising ‘Blue Wave’ narrative benefiting those companies that stand to benefit from Democratic party policy. 

read more
Further For Longer

Further For Longer

On Tuesday Fed Chairman, Jerome Powell, made a speech at the National Association for Business Economics, during which he implied the government should err on the side of caution and provide too much stimulus rather than too little. 

read more
Life Imitating Art

Life Imitating Art

Saturday Night Live has a reputation for expertly parodying presidential election debates. My all-time favourite is Al Gore (Darrell Hammond) versus George Bush (Will Ferrell) and this year didn’t disappoint with expert performances from Donald Trump (Alec Baldwin) and Joe Biden (Jim Carrey).

read more
The Call-Up

The Call-Up

Last week the FTSE Russell decided to include Chinese government bonds in its flagship World Government Bond Index (WGBI). The decision follows similar moves, from JP Morgan and Bloomberg, and a failed attempt to do so just one year prior which resulted in a number of reforms, to increase accessibility and currency trading options, that ultimately paved the way for benchmark admission.

read more
Technical Perspectives

Technical Perspectives

In last week’s blog we discussed the ‘Nasdaq whale’, Softbank, and the role it played, alongside an army of retail investors, driving tech prices ever higher prior to the recent correction. These short-term ‘technical’ flows are driven by the options market as traders look to hedge their underlying exposure, amplifying moves both lower and higher.

read more
Halcyon Days

Halcyon Days

Today, global equity markets have fallen again and yields on developed market government bonds have collapsed even further. In my opinion, there are two diametrically opposed events playing out at the same time.

read more
A Time to Remain Calm

A Time to Remain Calm

This is a time to remain calm, patient and focused on fundamentals whilst relying on sound risk management practices. Over the last week the number of confirmed cases of COVID-19 has risen to more than 83,000 people across 50 countries.

read more