Archive for July, 2011

Hoping for reduncancy– when all Investing is SRI

Thursday, July 14th, 2011

AMEN! to Fast Company blogger Marc Stoiber.

The way I’ve been phrasing it is “I hope that by the time I retire ‘Socially Responsible Investing’ will be like saying ‘Color TV’– redundant. All TVs are color now, and I’d like all Investing to be Socially Responsible.

It’s Time That Socially Responsible Investing Was Just Investing

The Liquidity Trap

Wednesday, July 13th, 2011

What makes a financial-induced recession different from a business cycle recession?テつテつ Brad DeLong of Bloomberg News has a good discussion, entitled “The Sorrow and the Pity of Another Liquidity Trap”.

The short answer is that cyclical recessions can be ended and the economy restarted by lowering interest rates, so that avid consumers and investors will be more willing to get back to putting money to work.テつテつ Our current financial recession, however, has frightened all the usual spenders.テつ Even though we have record-low interest rates and a record-high money supply, the economy is barely crawling forward.

This is exactly the situation that Keynes wrote about after the Depression.

The Sorrow and the Pity of Another Liquidity Trap: Brad DeLong

Quantifying sustainability for investing

Wednesday, July 6th, 2011

In the info age, we’re more and more able to use quantitative screens to measure and rank sustainability and other desirable types of corporate social responsibility.
Thus far, investment managers have been keeping their SRI screens proprietary. Ideally, the data could be gathered and shared, given to the public domain. SRI funds would still be able to differentiate themselves by the emphasis they put on different SRI factors. And, of course, investment managers will always compete with one another for investment results.

I applaud Michael Muyot, President of CRD Analytics, for his work described in “A Quant Approach to Sustainable Investing”.

I hope that we’ll see the day when all investing is socially responsible.