There are two foundational themes to the discussion of the merits of ESG (ethical) investing: values and performance. The COVID 19 experience can be expected to impact both of these. For many ESG investors, the impact on performance is likely to be the most interesting, and perhaps the most difficult to predict.
It should be expected that the COVID 19 experience may have a profound impact on ESG investing behaviours and related topics.
At the risk of overstating the obvious, the month of February was challenging both psychologically and financially for investors.
As the spread of the Covid-19 virus escalated globally, fear and uncertainty took hold of the markets resulting in the fastest correction of U.S. and Canadian stocks in history.
After peaking near all-time highs somewhere close to the middle of the previous week, by market close on Friday February 28th, the S&P TSX composite Index, representing Canadian stocks, was down overall on the month by approximately 6 percent, while losses on the m
BMO is celebrating the launch of 11 new ETFs, 8 of which have a focus on companies that are leaders in ESG (Environment, Social and Governance). This innovation in ESG investing comes from a combined strength of BMO Global Asset Management, a UN Principles Responsible Investing (PRI) signatory since 2006 and MSCI, voted best firm for SRI research, corporate governance, research and indexes. 40 years of experience in ESG research has led to over 1300 firms utilizing their ESG insights as part of their investment process.
There was very little holding the U.S. and Canadian stock markets back in December. We had identified a possible headwind with a proposed round of tariffs set to take effect on December 15th. However, with a “Phase 1” trade agreement reached between the U.S. and China instead, and Trump’s impeachment being of no consequence to the markets, investor optimism continued to push stocks higher into the close of 2019.
U.S. and Canadian stocks continued to extend their gains through the month of November and into December, with consumer and service-based sectors leading the charge.
Markets continued to push higher against a background of positive consumer sentiment surveys, low interest rates and supportive central banks, plus a favorable labour market overall, albeit recent Canadian employment numbers have turned sharply negative.
The end of June marked the close of the second quarter of 2019 and the halfway point in the year. In reflecting on the past 6 months, the old saying that the market climbs a wall of worry really seems to be quite fitting.