This 1st Week of March 2022 Thoughts
Updated: Sep 23
War is bad for your bottom line:
Microsoft is suspending all new sales of products and services in Russia and joins Airbnb, FedEx, and Volkswagen as the latest companies to suspend operations in Russia. “We are horrified, angered, and saddened by the images and news coming from Ukraine” stated Microsoft’s President Brad Smith. FedEx is temporarily suspending all services in Russia and Belarus.
This Week’s Fund Profile: perth-tolle-sponsor-of-the-frdm-etf/
In Selma today, Vice President Harris told the people gathered: “Today, the eyes of the world are on Ukraine, and the brave people who are fighting to protect their country and their democracy: their bravery is a reminder that freedom and democracy can never be taken for granted by any of us.”
Freedom 100 Emerging Markets Index (FRDM) holds 100 stocks in emerging market countries and uses 76 personal and economic freedom variables which can be categorized into three main types of freedom metrics:
· civil freedom (such as absence of terrorism, human trafficking, torture, disappearances, and detainments),
· political freedom (such as rule of law, due process, freedom of the press; freedom of expression, freedom of religion, and freedom of assembly),
· economic freedom (such as marginal tax rates, access to international trade, business regulations, sound money, and size of government).
FRDM has data that demonstrates that freer markets perform more sustainably, recover faster from selloffs, and use their human and economic capital more efficiently: there is also less capital flight and capital destruction than their less-free counterparts. Ongoing regulatory and geopolitical events in emerging markets have now exposed Wall Street's mis-pricing of “autocracy risk.”
At its height, China's allocation to traditional market indexes exceeded 40%! FRDM is the only emerging markets ETF that has no allocation to China, without being specifically mandated to exclude it: the exclusion is a natural result of freedom-weighting. Russia and Saudi Arabia are also excluded but these countries are in FRDM: Taiwan, Chile, South Korea, Poland, South Africa, Brazil, Malaysia, Indonesia, Mexico, Thailand, and the Philippines.
FRDM was developed in 2017 by Life + Liberty Indexes Founder, Perth Tolle: I was lucky enough to have an hour of Perth’s time in a Zoom meeting last summer when my concerns about China pushed me to research how to divest your portfolios from China. In doing that, I also removed Russia from your life as well! 😊 Why does this matter to you? Russia’s invasion could hit the economy and markets in these ways: the price of oil and how sanctions on Russia could affect the financial system. Today, though, it is clear: defending democracies across the globe from those who deliberately seek to inflame and then profit from their destabilizing actions is what is at stake. Considering long- term consequences is essential: think back to when companies moved manufacturing plants overseas to improve their bottom line, and how decades later, we are paying by having a supply chain that is now broken.
😊 Why does this matter to you? In spite of the Fed’s headwinds and suffering of the Ukrainian people, there are reasons to feel optimistic about economic growth: at the end of the day, that really matters!
--Liz Ann Sonders, Chief Investment Officer at Charles Schwab on the Tech Sector’s strong margins.
--Dr. Copper, the metal with a PhD in Economics is UP…saying economic growth is improving.
--The VIX…the Volatility Indicator, says markets have performed well 1-year later, when the VIX (volatility indicator) has been this high, or higher.
Required Disclosures: Always read the fine print! This content reflects the opinions of Julie Skye and is subject to change without notice and is informational and entertainment purposes. It is not a recommendation regarding the purchase or sale of any security. There is no guarantee that any statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Securities investing involves risk, including the potential for loss of principal. There is no assurance any investment plan or strategy will be successful.
Julie is an Investment Advisor Representative of Sustainable Advisors Alliance, LLC (SAA, LLC): Advisory services are provided by SAA, LLC.
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