More ethical investment after the crisis!

Sales of financial products which are “ethically, environmentally and social” are rising because of gain in moral restraints? Fincancial Times Deutschland (p.e.: 21/10/10 p21) and I think so. It might have an impact on YOU too.

The early financial past as well as disaster management by big MNCs  has cast a damning light on many aspects. Greedy managers is just one of them. Big companies failing in keeping our trust in them alive is another.

Just two examples that may have changed investor’s propensity from money-focussed only to a more diverse perspective, giving alternative products a chance.

First of all, I’m not saying that sales of other financial products have changed in any way. In the contrary: the financial recklessness is moving on where it has stopped during the financial crisis, as the FTD states in its 21/10/10 print edition.
People have seeked and will always seek profit, the less risky the better. That kind of risk was present but not very visible if it came to uncovered debt in the mortgage business in the us market.
There are still many seekers of fast money out there. This strategy of course connects with higher risk loosing your investment.

Traditional investment strategy was and still is marked by the various possibilities of how to invest your money. Stocks, bonds and funds are just a few. The latter is now enriched by a new focus. Cunning investment bankers came up with the idea to not only putting a few sustainable stocks in their portfolio, some even started to generate funds which include only sustainable companies such as solar. Check out the European Sustainable and Responsible Forum for more intel on sustainable funds.

A list of choices can be reviewed at Sustainable Investment. They not only list sustainable (ethically justifiable) funds, they also list the ingredients. And don’t get all antipathetic at this point. You will be surprised by short term performance.

It is of course questionable wether or not past financial and environmental disasters have anything to do with the growing investments made in sustainable fonds.
Another reason could be the continuous decline of fossil fuels. A field which devides its opponents based on analysis coming from both sides, the ones who are saying that we will run out of oil in 15 years and the other fraction which is discovering oil under Paris, namely Lundin Petroleum, exploration and drilling company.

Wether financial and environmental past or future decline of quantity of commodities is impacting investment behaviour may spark a debate at this point.
I for one say that latest events have caused a change of investment behaviour.
Money making is and will always be a part of human behaviour. If this is for the better or the worse of humanity is worth a discussion.

Let’s keep an eye on future trends of the ingredients of investment fonds.

——–
rudi2020

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6 Responses to More ethical investment after the crisis!

  1. rudi2020 says:

    Check out Al Gore’s speech on sustainable growth at Columbia University in this blog.

    http://uwire.com/2010/10/06/al-gore-talks-sustainable-capitalism-investment/

  2. bravenewloock says:

    Nice post, thx! I think that if Politics is not able to break up the lobby-power of “unsustainable” companies like BP, let the market do it! For even more info, check out the study of the World Federation of Exchanges on Sustainable Investement: http://www.world-exchanges.org/sustainability/WFE-ESG.pdf

  3. what a peculiar issue!very nice!
    Indeed it reflects the people’s change of mind…let’s hope that their interest in sustainable investments stays sustainable as well!

    Thank you for this blogpost! I haven’t heard about that so far.

  4. Pingback: Watch out for those…! | BraveNewFinance.

  5. vivipre says:

    Indeed, the number of sustainable investments has increased enormously over the past years, as this graph from renewablepowersnews.com shows.

    I agree, though, that people rather seek profit and the green energy sector, as a leader in the fast growing industries, looks very promising.

    Check out the blog post ”Welcome’ to the paradise.” from our colleague alexa5 about ethnical investment opportunities.

  6. rudi2020 says:

    Thanks for your follow up. I just found another great compilation for “investing green”, in case that lowers your remorse making money out of literally nothing by just speculating on increasing share prices.

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