What Can we Expect when Donald Trump becomes US President again next year?

Next year sees the US presidential election taking place, and at this stage, it does look like a repeat of the Trump vs. Biden campaign.

Hywel George, as Director of Investment at the Old Mutual Investment Group (OMIG) - after sharing a look at global markets including US Big Tech and then on BRICS, - shares his thoughts on the upcoming US election.

To view this recording, click on this link: Money Matters - What to expect when Trump becomes president?

What’s the deal with sustainable investing?

22Seven, the budgeting App I use shared this article about the basics of sustainable investing.

“Are you concerned with how your money is invested? For some people, it’s not enough to simply watch their money grow, they want to know that the investments they’re buying into are doing good for the environment and society.

It’s called sustainable investing and it’s closely tied to the principles of ESG, which stands for ‘Environmental, Social and Governance’. Let’s take a closer look at what the three letters mean:
 
• Environment: Investors look for companies that might be involved with sustainable energy production, for example, sustainable food production, or reducing waste. An example of a company that considers its environmental impact would be one that uses renewable energy sources that emit fewer greenhouse gasses, or one that adopts a no-deforestation policy.

• Social: This criterion is all about people. How will your investment choice improve the lives of others? An example is a food and beverage company that gets its supply by working with small farmers, thereby improving the livelihoods of those farming communities.

• Governance: Governance refers to how well a company is run. Does management only look out for themselves, or are they concerned will all their stakeholders? Do they have efficient policies to care for staff? A company with good governance discloses all its policies, has transparent accounting methods, and has clear guidelines for eradicating bribery and corruption.

Why invest sustainably?

It comes down to what you stand for. Of course, you want to make a profit with your investments, but are you happy to make a profit at the expense of society and the environment?

As the world moves towards a more environmentally friendly state of mind, studies have shown that there's actually a strong link between doing good and making money. Companies that are solving some of the world's biggest problems are naturally most likely to grow.

How do I do it?

There are several ways. When you’re investing, or when you’re chatting to your financial advisor about your investment strategy, you can outright avoid any funds that hold ‘sin’ stocks like tobacco, casinos, alcohol and firearms.

Or you can apply the ESG principles, which gives you some more flexibility. You can still invest in a fund that holds mining stocks, for example, if the mining companies in question are rehabilitating the environment and doing good in the communities they operate. The ESG scores for most companies can be found online, so you can check them out before making your sustainable investment decisions. Similarly, there are specific unit trusts and mutual funds that focus on ESG. Chat with your financial advisor if you need some guidance.

Keep in mind that your money is not limited to what you see on your banking app – it’s part of a much bigger picture. By investing sustainably, you can make sure your money choices are aligned with your values”

Rugby World Cup | History vs. Algorithms

With the World Cup starting last week, history shows us that, as a country, we are pretty optimistic when the Springboks win;

Over the last year, the Boks have beaten the All Blacks three times in the previous five matches between the two sides, with the last one being a record win over the All Blacks. Yet, the All Blacks started the statistical favourites, followed by us and France.

However, after last weekend’s matches, including the opening match where the All Blacks lost to the hosting French team, the Boks have become narrow favourites to take the overall title.

The further statistical breakdown of this is as follows;

AI is becoming more prevalent, but remember that human interactions cannot be predicted and this gives me faith that I can still enjoy the games without spoilers.

Interestingly, Ireland is the number one ranked team in the current world rankings (and who beat the All Blacks in a series win in New Zealand last year) – yet they only have an 11,9% statistical probability of winning the tournament;

While we are in the spirit of Rugby I attended an Old Mutual Investment Group presentation last month where "The Beast" was the keynote speaker. He shared his excitement for the Rugby World Cup and going to France as a guest rather than a player he felt much calmer. He also shared what he has been doing after his retirement after the previous World Cup and you can read more about it here: Home Page - The Beast Foundation

He is a real hero on and off the field. He is now a very successful businessman, giving back and encouraging everyone he speaks to. I had a few words with him and also took a snap with him after the function. Our previous manager, friend and now Head of Retail Business at the Old Mutual Investment Group is on the left of the picture.

Friday Food for Thought