this 3rd Week of August 2020 thoughts
Updated: Feb 4, 2021
QUOTE OF THE WEEK: “The Earth is like a medical patient suffering from a condition called climate change. T
rying to fix it with years-late, self-reported emissions data is like asking a doctor to diagnose a serious disease with a list of symptoms the patient had years ago” stated Gavin McCormick of RMI. But more than just getting good data, forward thinking leaders on the local level have to take action to shutter projects that will put our earth closer to being on life-support. 😊 Why does this matter to you? After rejecting a $1.4 billion gas pipeline into New York City, state leaders have an opportunity to pursue the efficiency and electrification solutions that can both ensure a reliable energy supply and advance the state’s climate goals. You are investing in the solutions…you are kicking the cord out of the wall socket of life-support and helping prevent the 2-degreen scenario that will bring damage that cannot be undone.
This week, Tiffany & Co. announced that it will take an industry-first step in diamond traceability by sharing the full craftsmanship journey of its newly sourced, individually registered diamonds. Since 2014, Tiffany has shared its efforts to ensure that its gems are conflict-free and every link in its supply chain contributes to the wellbeing of people and the planet. Unilever is working to get unprecedented insight into its palm oil supply chain. Understanding and managing land use in global supply chains, is increasingly critical for ensuring the sustainability of agribusiness sourcing and Unilever has been at the forefront of the efforts to make sustainable palm oil a reality. In 2018, Unilever and the Indonesian government-owned palm oil plantation company PT Perkebunan Nusantara signed a Memorandum to produce palm oil according to the standards of No deforestation, No development on peat and No exploitation of people and communities (NDPE). 😊Why does this matter to you? Socially Responsible Investing (the ESG in my logo!) is not just windfarms and solar energy! Many companies get it right and are leading their industries forward.
Is a Nightmare on Main Street coming? More small businesses share how much jeopardy they are in and half of the stocks in the S & P 500 are “down” for the year. It is the New-Gen retail and technology companies benefitting from the Pandemic that are higher. The gold at the end of the rainbow markets are looking for? A vaccine and a prayer the economy opens up as 2020 comes to a close and that 2021 brings amnesia about the pain we suffered this year. Too many small companies though, are shuttering their doors at twice the rate larger companies are: 10% of small business have permanently closed, vs 4% of larger ones. 😲 Why does this matter to you? The trillions of dollars the Fed has injected into the economy has not prevented many families from experiencing the permanent loss of their blood, sweat and tears…and their savings and paycheck. Even the hope of more freshly printed money will not inoculate all of our neighbors.
With 2,000 electric trucks on U.S. roads today, it is expected we will see over 54,000 by 2025. Passenger electric vehicles (EVs) and electric buses are still in their infancy but with medium-to-heavy-duty vehicles being the 2nd largest contributor to U.S. transportation emissions, we must electrify the fleet. While the internal combustion engine (ICE) is large, heavy, and “fires” many times each second, the electric engine is exponentially simpler. It is lighter, smaller and you can count the number of moving parts on your right hand: anyone who has owned an EV falls in love with its brilliant design. EV engines sit on top of axles and they look like a skateboard with a battery lying flat between the axles. With no transmission bulging down the center of the car, there is more space inside the cabin. The empty space up front, called the “frunk” – serves as a giant bumper and in case of a collision, it transfers the energy into the cabin, protecting the driver and passenger. Also, the battery pack lowers the center of gravity, making the car less likely to flip. The U.S. sells 17 million cars a year and if this continues for the next 10 years, EVs will make up half of all vehicles: ICE cars will drive into the sunset. 😊 Why does this matter to you? The complexity of the traditional ICE car is mind-boggling with thousands of moving parts interconnected by belts and gears that need to be oiled and cooled. Investing here is smart, and so is the freedom of only replacing the air filter and tires, and filling your window washing fluid! Sustainable investing is about recognizing the future will brings good changes.
If you have been thinking “surely we have not seen the worst of this pandemic…why is the market so high,” just connect the dots. Congress and the Senate are in gridlock over making extra unemployment benefits, supporting small businesses, and sending payments to individuals. These dollars dried up July 31st, and this headline is chilling: “Nonprofits and municipalities are bracing for as many as 500,000 Oklahomans – 13% of the population – facing eviction from their homes next week.” COVID will not move down to a manageable level that lets us go back to work, open schools and get our sports teams get playing until citizens work together. “Data shows masks make a difference in Oklahoma: mask ordinances have had a measurable effect on reducing the spread of COVID-19 in Oklahoma communities, the CEO at the My Health Access Network said Wednesday.” 😊 Why does this matter to you? Until someone breaks the power-play going on here at home and in Washington DC, the risk of being in the market may still be higher than many want to bear. Having higher levels in your money market will let you sleep at night and have “dry powder” to buy when the facts seem to make more sense.
Tulsa definitely had the feel of fall this week, with morning temperatures in the 60s: better times are coming!
Book time on my calendar but shoot me an email you’ve booked it!
Best Always, Julie
Constancy noun con·stan·cy | \ ˈkän(t)-stən(t)-sē
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