Last week, August 14th, the yield on the 10-year US Treasury note fell to 1.58 percent, a number that was last reached in late 2016. Also last week, the yield on a 30-year bond fell to 2.03 percent, the lowest record ever. When this happened in 2007, the Great Recession followed.
So, why exactly is this happening? Investors are worried about a lot of things right now, including the US-China trade war and the fact that the German economy is not doing well. When investors are worried, they tend to start selling riskier investments, like stocks, and start shifting their money to investments like bonds, since bonds are safer than stocks. This helps them protect their money in case the economy takes a turn. Bond prices go up, and yields down, when people buy bonds all at once. Economists carefully monitor bonds and when yields are declining or there are radical moves in the bond market, they take it as a strong sign that a recession may be around the corner.
But it’s important to note that even as falling bond yields can be a sign of a weakening economy, there are other ways to gauge how the economy is doing, such as the job market and the consumer outlook ratings. Coincidentally, both are doing pretty great right now.
With all this uncertainty, is this a good time to start investing? The answer is YES! The thing is, there’s always going to be worse times and better times to invest, and since NO ONE can predict when those times are going to happen, one of the best techniques is to invest consistently (i.e. investing a certain $/mo automatically) no matter what’s going on in the economy/market, which is also known as dollar-cost averaging. Dollar-cost averaging takes the guesswork out of the process and allows an investor to buy more when prices are low and less when prices are high. In addition, dollar-cost averaging takes emotion out of the process, which can be an investor’s worst enemy, gets rid of guessing, and makes investment a consistent habit. Dollar-cost averaging gives yourself the opportunity to grow your investments at a steady pace over time. And when making consistent investments, it also makes sense to place those funds into a well-diversified portfolio. Like the saying “don’t put all your eggs in one basket,” diversification can protect you from big declines when the market does take a big turn by being invested at all times in assets that react differently in different markets (strong markets, weak markets, inflationary markets, deflationary markets, etc.).
Here at Invested Interests, we help you create a diversified portfolio with mutual funds that only contain companies that align with your values. That way you’re not only investing in your future, and keeping risk at a minimum if a recession happens, but you’re also aligning your investments with the socials issues you most care about.
Want to learn more about how to align your investments with your values and becoming an Impact Investor with us? Click HERE and will be in touch.
Source:
https://www.nytimes.com/2019/08/14/business/stock-market-today-bond-market.html
The use and abuse of opioids in the United States is not something new. It started during and after the Civil War, when injured soldiers were given morphine for their pains, and consequently got addicted. During the late 1800s and early 1900s, heroin was legal and often used to treat coughs. It wasn’t until1924 that heroin was banned, but people still managed to get their hands on it.
One of the reasons why the misuse of opioids painkillers started in the early 1990s was because of a single paragraph printed on the New England Journal of Medicine in 1980 saying that painkillers opioids were not addictive. In the following years, pharmaceutical companies (such as Purdue Pharma) took this opportunity to market their new opioid painkillers. Doctors were encouraged by pain specialists to prescribe opioids to their patients in large amounts.
In the early 2000s, the problem got worse when the medical practice standards changed. Doctors were only supposed to give opioids painkillers for patients that had gone through surgery or were close to dying, but with the change, they were required to prescribe opioid painkillers for chronic pain as well, which led to even more opioid prescriptions.
Today, millions of Americans are addicted to opioids, like Vicodin, oxycodone, hydrocodone, fentanyl (which is legal and prescribed by doctors) and heroin (which is illegal). The death toll is six times higher today than in 1999.
The opioid crisis has turned into a public health issue, with more than 70,200 deaths just in 2017 alone, with an average of 130 people dying of opioid overdose daily. Americans represent about five percent of the world’s population, and they consume about eighty percent of the world’s opioids! This epidemic is affecting millions of Americans, and it’s time we all do something about it.
Purdue Pharma is being sued by almost every US state for downplaying the addiction risk of opioids and promoting its opioids painkillers to make millions of dollars. Big pharma companies like Johnson & Johnson, Allergan, and Teva Pharmaceutical Industries among others are also being sued.
It’s easy to see the opioid epidemic as a problem of others and not our own and turn our heads to the other side. We need to take into account the human dimension of the crisis and recognize that this is about all of us. By divesting our investments from big pharmaceutical companies, we’re telling them that we’re not okay with this epidemic and that we’re taking a stand for change. We’re taking a stand for human rights.
Learn more about our Human Rights portfolios HERE.
Sources:
https://www.cdc.gov/drugoverdose/epidemic/index.html
https://www.theguardian.com/society/ng-interactive/2016/may/25/opioid-epidemic-overdose-deaths-map
https://www.businessinsider.com/porter-and-jick-letter-launched-the-opioid-epidemic-2016-5
June is Pride month. It has been a long fight, and we’re still fighting. A fight for equality. A fight for acceptance.
Even with all the progress made, LGBTQ+ individuals still face discrimination in the workplace. To support companies that have embraced diversity is another way to support LGBTQ+ rights. Accenture, Google, IBM, IKEA Group, Microsoft, PayPal are some of the companies that have gone above and beyond supporting LGBTQ+ rights.
This month, people all over the world are celebrating the LGBTQ+ community. For decades, LGBTQ+ individuals have been fighting for equal rights, dignity, and the freedom to live and love openly. We have had some wins and some setbacks, but through it all, there is hope.
Given landmark wins and growing acceptance of LGBTQ+ people in recent decades, it can be easy to forget the oppression suffered during the 50s and 60s in the United States. To be gay or trans during those times was often perceived as an illness that could be cured through methods like psychiatric institutionalization or electroshock therapy.
Since then, LGBTQ+ people have had some major legislative and equality achievements including:
1958 – The Supreme Court of the United States acted on behalf of the LGBTQ+ community’s side for the first time. They sided with “One” (the first gay magazine in the U.S.) against the US Postal Service, for refusing to deliver the magazine.
1961 – Illinois became the first state to make homosexuality legal.
1969 – The rise of Stonewall and gays rights movement.
1973 – The American Psychiatric Association finally removed homosexuality from its mental disorder list.
1982 – Wisconsin became the first state to prohibit discrimination based on sexual orientation.
2003 – Massachusetts became the first state to make gay marriage legal.
2016 – President Obama and his administration announced it will end the ban on transgender people serving openly in the military, once implemented by Bill Clinton (the “Don’t Ask Don’t Tell Policy”).
There’s been some great progress in the LGBTQ+ community over the years. The most recent one being the 2018 midterm elections when a record number of LGBTQ+ candidates won their races. But there have also been some setbacks. The Trump administration finalized a law that will allow health care workers to deny care if it goes against their religious and moral beliefs, which will most certainly affect the LGBTQ+ community. Meanwhile, President Trump’s ban on transgender military members announced in 2017 could go into effect, a huge setback for the LGBTQ+ community fight for equality.
For decades, LGBTQ+ people and supporters have been working together to make sure the community have equal rights, and there’s still more work to be done. LGBTQ+ communities and their allies continue to build awareness around the struggle for dignity and the freedom to live and love openly.
Invest in companies that fight for human rights and that support gender and racial diversity initiatives.
Learn more about our Human Rights and Diversity & Equality portfolios.
Sources:
https://www.advocate.com/current-issue/2017/11/06/10-companies-leading-way-global-lgbti-rights
https://www.latimes.com/nation/la-na-court-gay-magazine-20150111-story.html
https://www.cnn.com/2017/07/26/politics/trump-military-transgender/index.html
Parkland. Sandy Hook. Orlando. Vegas. Virginia Tech.
Do we need to continue?
The truth is that unless something changes the only thing that will continue is gun violence. Gun violence is considered among many to be a public health crisis – it’s this violence that has taken so many innocent lives and caused millions of others to live in fear of attending a movie, concert, religious gathering, and even school. And yet, year after year, very little changes in regulatory or manufacturer obligations to combat violence.
The majority of Americans agree with common-sense gun control. In fact, recent polls have shown that greater than 95% of citizens agree with universal background checks. In addition, the majority of Americans also agree that owning a weapon is considered a constitutional right and should be protected.
We know that we need change. And it’s frustrating because there is a high level of consensus across America on the sort of common-sense safety measures that need to be brought up and passed. Among gun owners — and I’m a gun owner myself — 97 percent support expanded, universal background checks so we don’t have the gun-show loophole so that we don’t have the internet purchases that don’t go through a thorough background check. – Tammy Baldwin, Wisconsin Senator
So, where do these values merge and how can we come together to help stop the violence that plagues our streets, gatherings, and schools on a daily basis?
After the Christchurch massacre in New Zealand, not only did the government immediately ban semi-automatic weapons, but NZ Super Fund administrators made the decision to divest their funds from gun manufacturers.
Yet in the United States, where American citizens are ten times more likely to be killed by guns than those from other developed nations, profit is put over people. Lobbying and deep pockets from the National Rifle Association (NRA) and gun and weapons manufacturers have all but halted any government-led efforts to regulate gun sales and combat gun violence.
Change can start from numerous places. And it can start small.
Did you know that many 401(k) plans invest your retirement money into companies and manufacturers that either are involved in the direct manufacture of guns and weapons or profit after a shooting takes place?
At Invested Interests, our Peace Portfolio divests (removes your investments) from companies that drive their revenue from the manufacture or sales of weapons and weaponized technology. It also removes your investments from those profiting off of the sales of weapons and ammunition across the world, putting weapons into the hands of terrorist organizations or repressive regimes. Helping to eliminate humanitarian crises, such as those currently occurring in Yemen {link}, as well as helping to prevent further gun violence at home in the United States.
Your investments are a reflection of your values. Advocate for your values with the companies you have trusted with your investments. Interested in reviewing ESG factors as they pertain to your values? We offer many different socially responsible portfolios and offer custom screens including Shareholder Advocacy, Community Impact Investments, Employee Relations, Environment, Product Safety, Corporate Governance, Military Contracting, Alcohol, Nuclear Power, Tobacco, Gambling, Animal Testing, and avoidance of Repressive Regimes.
Want to learn more about impact investing and how you use your money for good? Start building your portfolio today!
As impact investors, a lot of emphasis is put on reviewing ESG (environmental, social, and governance) factors as they pertain to investments. ESG factors are what separate impact investments from traditional investment options. When reviewing options with their advisers, many new impact investors choose to focus on the first two factors. Environmental and Social. Why? Because they are easiest to understand.
For many investors, Environmental factors are what brought them to impact investing in the first place. This factor allows advisers and their investors to review companies with environmental missions. They could be focused on combatting climate change, reducing waste, eliminating pollution, or creating alternative energy sources. It also helps them remove companies from their stock portfolio that are doing damage to their local environments or are a major source of pollutants entering the atmosphere (think oil and gas companies).
Social factors showcase companies that have a strong socially responsible outlook. They may contribute back to organizations and causes either locally, nationally, or globally that help combat hunger, stop the spread of disease or other worthwhile causes that make a difference on our planet.
Governance, however. Governance is a factor that is often overlooked but equally as important. Governance factors illustrate whether a company operates with accountability, integrity, and equality in all of its practices. Governance is often reviewed independently by referring to the policies and procedures a company follows not only when addressing reports and shareholders but in their day-to-day operations.
Companies with strong governance factors often have a racially and gender diverse board of directors, fair and ethical work standards (think equal pay for equal work), and a code of conduct that is practiced among all levels – from interns, to executives, to the board itself.
Many corporations with high governance factors have executive pay-caps and bonus reviews, are transparent about political spending and candidate backing, and contribute a percentage of their earnings back to their community in some way.
Your investments are a reflection of your values. Advocate for your values with the companies you have trusted with your investments. Interested in reviewing ESG factors as they pertain to your values? We offer many different socially responsible portfolios and offer custom screens including:
- Shareholder Advocacy
- Community Impact Investments
- Employee Relations, Environment
- Product Safety
- Corporate Governance
- Military Contracting
- Alcohol
- Nuclear Power
- Tobacco
- Gambling
- Animal Testing
- Avoidance of Repressive Regimes.
Want to learn more about impact investing and how you use your money for good? Start building your portfolio today!