In “The Tipping Point”, Malcolm Gladwell describes how ideas spread like epidemics- slow at first, and then after reaching a point of critical mass, they accelerate. We may be approaching the tipping point in green & socially responsible investing (SRI). If we as investors join the SRI movement, more and more pressure will be applied to CEOs and corporate boards. As Larry Fink, of Blackrock funds stated this morning,”a fundamental reshaping of finance, with a significant reallocation of capital {is} set to take place”. Though Fink may be the fox watching the hen house, he does have an inside view of Investing trends. Investors are increasingly demanding action in response to climate change- the defining issue of our lifetime. Ongoing climate related disasters and social media are pushing the issue to the tipping point. As more and more investors join the movement there is another benefit, and it will directly impact your retirement. The potentially massive amounts of wealth that shift from average company stocks to the socially responsible stocks could create a scenario where SRI stocks outperform the rest of the market by a wide margin. This is where you and your retirement benefit financially by doing the right thing. A look at clean energy stocks over the last 3 years may provide a clue to future trends. Between January 2017-Decemebr 2019, clean energy stocks gained 97%, while traditional energy stocks returned -9%. Your investing dollars are more powerful than your vote- don’t throw them into just any fund. Many “SRI” mutual funds are loaded with traditional energy companies. Stonebrook has been offering clients SRI solutions for 20 years and has many fossil free investing options. Join the movement! Your world and your retirement may depend on it.
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