🇺🇸 Big US firms said no to ESG

The end of ESG, an intimidating pile of British debt, where pros would invest a windfall, and the social magic of spin classes | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 21st in 3:14 minutes.   🥶 There's a chill in the air, so it's time to put away the flip-flops and grab your cozy Finimize socks. We won't make you buy them, though: [fill in this super-quick survey]( for us and you could win a pair. [Fill it in here]( Today's big stories - The biggest US money managers pared back their approvals for ESG proposals, likely feeling the heat from the country’s politicians - Two expert-approved pockets where you could stash a windfall right now – [Read Now]( - The UK’s national debt added up to 100% of the country’s economic output for the first time in over six decades Planet Inorganic [Planet Inorganic] What’s going on here? The three biggest money managers in the US put more environmental, social, and governance (ESG) initiatives in the – non-recycling – bin in the first half of this year versus the same time last year. What does this mean? State Street, Vanguard, and BlackRock own a combined 20% of all S&P 500 companies, so their votes carry serious weight. Back in 2021, the trio used that power to champion a record number of proposals related to climate change, diversity, and human rights. But they’ve since changed their tune. This year, State Street’s investing arm backed just 6% of environmental proposals and 7% of social ones, BlackRock voted for 4% of ESG proposals, and Vanguard a flat zero. Those figures are all down from the same time last year, reflecting the shift in the finance industry. Why should I care? For markets: Save the world or make more money… It’s basically Sophie’s Choice. Conservative US politicians have managed to curb the push for ESG, loosening regulations and discouraging firms from working together to cut greenhouse gas emissions. It seems other issues simply matter more than the whole “the planet’s on fire” thing: Bain & Co reported that CEOs have bumped sustainability down their priority lists in favor of inflation-related initiatives, AI, and geopolitical issues. Plus, many major firms are quietly winding down their commitments to diversity, equity, and inclusion programs. The bigger picture: Someone has to pay for the planet. Europe is still all-in on sustainability, mind you. Investors and politicians are continuing to support eco-friendly products and plans in the region. Plus, Europe has stricter regulations in place. Although, that could mean that European companies face higher compliance and regulatory costs than US competitors. And if buyers aren’t willing to pay more for ethically minded products, European firms might have to foot the bill themselves. That could keep the region’s firms trading at a discount to their American peers. You might also like: [Does being “good” lead to increased firm value?]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Planet Inorganic&utm_campaign=daily-global-21-09-2024&utm_source=email) Analyst Take Where The Pros Would Invest $100,000 Right Now: The Top Two Ideas [Where The Pros Would Invest $100,000 Right Now: The Top Two Ideas]( [Photo of Reda Farran, CFA] Reda Farran, CFA, Analyst It’s a truly splendid problem to have. You come into a little financial [windfall]( – say, an overdue bonus at work or a tidy inheritance from a long-lost relative – and you just don’t know what to do with it. Savings accounts have been a lucrative place to keep cash lately, sure, but now interest rate cuts are whittling away their benefits. So to bring in higher returns, you’re probably better off [investing that cash](. [Four leading wealth advisors]( recently shared their top ideas with Bloomberg, and I’ve taken [my top two]( a bit further to help you put them into action. That’s today’s Insight: [where the pros would put $100,000 right now, and my take on their ideas](. [Read or listen to the Insight here]( Bulls have horns for a reason Change might scare some of us – but it excites plenty, too. Case in point: when financial markets start moving as quickly as they are today, many investors take the opportunity to go against the grain or seek quick turnaround trades. That’s where [leveraged and inverse ETFs]( come in. The first lets traders amplify their high-conviction trades, while the latter lets traders bet on price dips without having to “short” assets. That means you could put a bigger bet on a market move or technical signal without accessing more capital. So if you’re a risk-tolerant trader, you’ll want to [find out how to use them safely and effectively](. Our free guide with Direxion – a platform that specializes in tools for decisive investors – has the lowdown: [discover how you could use leveraged and inverse ETFs to amplify your trades](. [Read The Guide]( See Direxion's disclaimers in their guide [here](. Far Out [Far Out] What’s going on here? The UK’s national debt relative to the size of its economy [hit]( 100% for the first time since 1961, and Brits don’t even have groovy tunes and go-go boots to distract them this time. What does this mean? The UK government's budget deficit – the difference between its revenues and expenses – has been widening, with more money being spent on energy subsidies, social services, public-sector pay, and interest payments on debt. So the government’s been forced to borrow money by selling bonds. At some scale, too: it borrowed a more-than-expected £13.7 billion ($18.2 billion) last month. That’s the highest August figure on record outside of the pandemic. So since the start of the financial year in April, the UK government has borrowed a heart-rate-raising £64.1 billion ($85.1 billion) – 11% more than the Office for Budget Responsibility had initially predicted in March. Why should I care? Zooming in: It’s time to settle up. The report is the penultimate snapshot of the country’s public finances before the newly elected government reveals its financial plan at the annual Budget event next month. This one could be a biggie: the UK has already been warned of “difficult decisions”, after a pick-up in the economy earlier this year failed to improve the country’s finances. In other words, folk should expect an unpopular combination of spending cuts and tax hikes. The bigger picture: Winter is coming. Brits seem to have heeded the warning. Data out on Friday showed that a key index of consumer confidence in the UK plunged seven points to land firmly in the negatives, indicating high levels of pessimism. The last time the index fell that fast was in April 2022, when energy costs hit the roof in the wake of Russia’s invasion of Ukraine. That signals that households are losing faith in their finances – a big deal given that consumer spending accounts for two-thirds of the UK economy. You might also like: [Everything you need to know about UK government bonds.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Far Out&utm_campaign=daily-global-21-09-2024&utm_source=email) 💬 Quote of the day "Silence speaks so much louder than screaming tantrums. Never give anyone an excuse to say that you're crazy." – Taylor Swift (an American singer-songwriter) [Tweet this]( Meet the experts in alternative assets You can’t call the markets in the best of times, let alone this year and next. So if you want your portfolio to pay for your next blow-out vacation, family’s college education, or look after you in old age, you should prepare it for as many outcomes as possible. That’s where [alternative assets]( come in: plenty of untraditional sectors have a low correlation with stocks and bonds, so they can reduce the risk and volatility in your portfolio. Of course, you need to know [how to make that strategy work for you](: how to split your portfolio, which assets suit your risk tolerance, how often you should trade, and the rest. So join our Modern Investor Summit to tune into [iCapital CEO Lawrence Calcano](’s exclusive interview with [Michael Sidgmore, the host of Alt Goes Mainstream](. You’ll get your answers about all things alternative assets, as well as gaining access to the rest of the Summit’s all-star lineup. [Grab your free Summit ticket here](. [Grab Your Free Ticket]( 🎯 On Our Radar 1. Hello there, Big Brother. UK companies are [tracking their employees](. 2. Crypto projects thrive on network effects. Here's [what to look at in a crypto project]( to see how much it’s worth.* 3. There’s nothing like a bit of sweat and pop music to form a friendship. Spin classes might be the [go-to spot for adults to make friends](. 4. Staking crypto could help your returns. Here's [how it works and the potential risks]( to watch out for.** 5. Fashion trends come and go. 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