Green Matters – December 28, 2020

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greenmatters

Insights for the conscious investor.

December 28, 2020

A personal note from the Green Matters Team at Willow,

Thank you sincerely for joining us this year as we shared with you some of the headlines that caught our eyes, informed the trends we see developing, and kept us all conscious as investors.

As we move into 2021, we would love your feedback so we can continue to deliver thoughtful and insightful content to you. Please complete this short survey and we’ll mail you a Willow canvas bag! 

For our last newsletter of 2020 we wanted to keep it light and share a guided meditation from the Willow Team. Wishing you a happy, healthy new year!
 

Meditation: Breath in, smile, now let it go. 

  • A guided mediation for loving change from the Willow team [20 min] (youtube)


2020: What at year… 

  • 7 wins that gave us hope for the environment in 2020 (natgeo)

  • A look at the remarkable women+ who made 2020 (ellevest)

  • Around the world, people yearn for significant change rather than a return to a “pre-COVID normal” (ipsos)

 

Carbonomics: The real emerging market. 

  • Companies taking strong climate action rose 46% this year (bloomberg)

  • Japan adopts green growth plan to go carbon free by 2050 (ABC)

     

Trends: Shifting like the weather.

  • Food futurology: How will we be eating 10 years from now?(foodnavigator

  • Firms want to adjust supply chains post-pandemic, but changes take time (wsj)

  • Each new generation has a harder time overcoming the wealth of their parents (vocal)

 

Blockchain: The digital push forward continues.

  • Why blockchain is the solution to sustainable energy (medium)

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About this newsletter:
This newsletter is curated by professional financial advisors, wealth managers and market researchers at Willow Investments for Loving Change. We sift through the daily noise to find nuggets of emerging trends and developments in our ever-changing world, focusing on the intersection of capitalism, consciousness and social & environmental justice. How these worlds converge directs the course of our future. One way we can make loving change is to share what we are discovering. 
          
Disclaimer: Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to buy or sell securities. This newsletter is for general informational purposes only. All information is provided in good faith, however we make no guarantee regarding the accuracy of any information contained herein. Please review our Privacy Policy, Disclaimer and Terms of Use & Conditions for more information. 

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Green Matters – December 21, 2020

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greenmatters

Insights for the conscious investor.

December 21st, 2020

Environment: The not silent crisis.

  • Seven wins that gave us hope for the environment in 2020 (nationalgeographic)

  • The top eleven must-see sustainability documentaries (triplepundit)

  • Should carbon credits count if the forests are already preserved? (bloomberg)

     

Companies: It’s time to step up. 

  • Why brands need purpose to survive now more than ever (sustainablebrands)

  • More companies holding cash reserves at Black-serving banks (forbes)

  • Leading car maker (accounting for 1% of global CO2 emissions) to link top executives’ pay to ESG targets (yahoofinance)

  • 45 of the 50 largest US companies turned a profit since March, yet the majority cut staff and gave almost 80% of total profits as buybacks and dividends (washingtonpost)

  • Here’s how corporate America did on their 2020 climate goals [visual] (bloomberg)

 

Tech: The good and the bad. 

  • How COVID-19 accelerated automation (futurism

  • 425 of the Fortune 500 companies may have been victims of massive cyberattack (cnn

  • Capella Space’s new satellite is eerily observant (input)

 

Energy & Renewables: Powering our future.

  • The world’s largest renewable energy ‘Megapark’ will be the size of Singapore (sciencealert

  • Electricity from a new coal plant is now 177% more expensive than electricity from new solar panels (fastcompany)

 

Economy: People & ideas.

  • Putting the green in greenback? ESG investors call for companies to report on “extinction accounting” (reuters)

  • Small business optimism falls by the largest amount since April (fanniemae

  • Wholesale traders have outsized influence on global food markets and are engaging in collusion for more profits (AEA

  • How people spend their time globally (visualcapitalist)

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About this newsletter:
This newsletter is curated by professional financial advisors, wealth managers and market researchers at Willow Investments for Loving Change. We sift through the daily noise to find nuggets of emerging trends and developments in our ever-changing world, focusing on the intersection of capitalism, consciousness and social & environmental justice. How these worlds converge directs the course of our future. One way we can make loving change is to share what we are discovering. 
          
Disclaimer: Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to buy or sell securities. This newsletter is for general informational purposes only. All information is provided in good faith, however we make no guarantee regarding the accuracy of any information contained herein. Please review our Privacy Policy, Disclaimer and Terms of Use & Conditions for more information. 

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Market Update December 2020

paul and alexandra discuss markets in Dec 2020

December 2020

This month, we celebrate being featured in CNBC’s article “These advisors actually ‘walk the talk’ when it comes to socially responsible investing.” Check it out here.  See below for our December Market Update + Client Q&A. Summary points below the video.

Market Update Summary (December 2020):

  • Our proprietary risk algorithm looks at 14 points of economic volatility. Risk levels have come down significantly and continue to do so. The economic volatility has returned to pre-pandemic rates. The markets are holding steady and there is no warnings flashing.
  • We’ve had a large-cap-based market advance over the last several years. We are beginning to see mid- and small-cap positions breaking out. This is typical for January time frame in an annual cycle, but this is encouraging that recovery may be trickling down to middle and smaller companies.
  • Pre-COVID we were operating at the best economy we have seen. The market is beginning to show a more distributed recovery, meaning additional health in the overall economy.
  • We are right at the point of potential breakout for some international positions. Some regions are reaching new highs. We haven’t liked the look of international markets for a while, but now we are ready to begin taking on some strategic international exposure. 
  • Markets can always be propelled higher – easy money and near-zero interest rates can trump everything in the economy. We are seeing this in the S&P 500 and other charts that continue to grow despite other factors like high poverty and unemployment rates.
  • The technology sector looks strong and shows no sign of waning. We continue to hold positions here and take on new strategic positions. We have also added strategic positions in consumer staples and industrials to reduce risk in the portfolio.
  • The cryptocurrency sector is gaining broader adoption from large companies and even mid-size companies. We liken this disruptive technology to the emergence of the Internet. We believe 98% of the cryptocurrency market does not have viability, but we are taking small positions strategically in the areas that are showing longer-term sustainability.
  • We look at trends and what those indicate. One trend we are planning for is Millennials coming into a massive transfer of wealth and the changes that will come with that: cryptocurrency, socially-responsible investing, etc
  • Another trend we see is the US dollar losing its position as the reserve currency. We may see this replaced by a basket of world currencies or digital currencies.
  • SPACs are coming back into popularity. SPACs are a way to have exposure in private companies, often focused on disruptive technology. SPACs provide a safer way to invest in disruptive technology. We have taken strategic positions in two of these and have to plans to add any more unless we see a strong manager.
  • We exited REITs (real estate holdings) a few years ago when our indicators let us know it was time. They have since performed badly. Our current small real estate positions are in the Class B space focused on the technology space, such as warehouses that house servers, etc.

As always, we continue to diligently track current market conditions and future economic outlooks so we can position our clients as strategically as possible.

We wish everyone a holiday season of peace and gratitude. See you in 2021!

To set up a meeting to discuss your portfolio, please click here or give us a call.
 

Best regards,

The Willow Team
+1 413 236 2980

Green Matters – December 14, 2020

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greenmatters

Insights for the conscious investor.

December 14th, 2020

Carbonomics: A new driving force for change.

  • The role of AI in carbon reduction and energy efficiency (forbes)

  • Pandemic caused CO2 emission to drop of 2.4 billion tonnes, but that’s only 7% of our 39 gigatonne human impact in 2020 (fastcompany)

  • E.U. agrees to slash carbon emissions by 2030 (nyt

  • The green hydrogen dream is no longer a dream (triplepundit)

     

Economy: Life uh, always finds a way…

  • Fixing the US child care crisis could deliver $1.6 trillion boost to GDP (bloomberg)

  • One in six restaurants has closed nationwide due to pandemic (bloomberg)

  • Pandemic + recession = multiple expansion? (compound)

  • Eighth annual conscious consumer spending index results are in (csrwire)

     

Glass Ceilings: It’s time to step up.

  • New report: missing perspectives – women six times less likely to be expert, source or protagonist in news stories (shethepeople)

  • New report: only 8% of all chair, CEO and CFO positions are occupied by women at S&P 500 companies (equileap)

  • Forbes releases 2020 list of world’s 100 most powerful women (forbes)

  • Mellody Hobson becomes only Black female board chair of S&P 500 company (bloomberg)

     

Investing: Align your dollars with the rest of your life.

  • Survey: Investors plan to double their ESG investing over the next 5 years (blackrock)

  • Victory belongs to the patient investor (tebi

  • The psychology of the stock market, in one image (pragcap

  • [podcast] Jeff Currie: Goldman Sachs commodities chief on ESG, carbon pricing, and new technologies (smartermarkets) 
     

Corporate Social Responsibility: Goodness is the only investment that never fails.

  • Corporate philotomy: the next evolution of corporate social responsibility (hbr)

  • CEOs from 37 corporations join the OneTen initiative, pledging 1 million jobs for Black Americans (wsj)

  • AI will change the world, so we must make AI more representative (nature)

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About this newsletter:
This newsletter is curated by professional financial advisors, wealth managers and market researchers at Willow Investments for Loving Change. We sift through the daily noise to find nuggets of emerging trends and developments in our ever-changing world, focusing on the intersection of capitalism, consciousness and social & environmental justice. How these worlds converge directs the course of our future. One way we can make loving change is to share what we are discovering. 
          
Disclaimer: Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to buy or sell securities. This newsletter is for general informational purposes only. All information is provided in good faith, however we make no guarantee regarding the accuracy of any information contained herein. Please review our Privacy Policy, Disclaimer and Terms of Use & Conditions for more information. 

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Green Matters – December 7, 2020

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greenmatters

Insights for the conscious investor.

December 7th, 2020

The Tides of the Economy: Always shifting.

  • How the must-have hipster vessel of DIY authenticity also became a foreboding signal of the economy (marker

  • The death of the department store and the American middle class (vox

  • Barry Ritholtz 2021 Outlook Year in Preview (ritholtz

  • Wages for the top 1% skyrocketed 160% since 1979 while the share of wages for the bottom 90% shrunk (epi)

  • 42% of people falling behind as COVID-19 widens the wealth gap, report finds (CNBC)

 

Change: The one thing we can count on. 

  • We’re at a turning point on climate change. But most countries are still choosing fossil fuels over clean energy, report says (CNN

  • City transportation ecosystems are suddenly getting more diverse, creating an opportunity to (finally) rethink the car (wired

  • How COVID-19 is changing our food system (quartz)

  • Six innovative solutions to the housing crisis (ssir)


Crypto & Digital Currency: The advances continue.

  • Will central-bank digital currencies break the banking system? (economist

  • Bank of Canada may be accelerating digital currency plans (decrypt)

  • Visa partners with Ethereum digital-dollar startup (forbes

  • The Ethereum 2.0 Beacon Chain is here. Now what? (consensys)


Greenwashing: Let’s get real.

  • Research firm TerraChoice highlights the seven sins of greenwashing? (ul)

  • Unraveling the ambiguity of Net-Zero pledges (newclimate)

  • NASDAQ asks SEC to require one woman and one “diverse” director on board for each listed company (nytimes)


Sustainable Investing: Align your dollars with the rest of your life.

  • Gen Z is pushing wealthy parents to more sustainable portfolios (financialnews)

  • Most investors now believe ESG has a positive impact on returns (globest)

  • Harvard team quantifies true corporate profit by adding or subtracting impact from bottom line (bloomberg)

Would you like to get this newsletter right in your inbox every Monday? Sign up below!

About this newsletter:
This newsletter is curated by professional financial advisors, wealth managers and market researchers at Willow Investments for Loving Change. We sift through the daily noise to find nuggets of emerging trends and developments in our ever-changing world, focusing on the intersection of capitalism, consciousness and social & environmental justice. How these worlds converge directs the course of our future. One way we can make loving change is to share what we are discovering. 
          
Disclaimer: Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to buy or sell securities. This newsletter is for general informational purposes only. All information is provided in good faith, however we make no guarantee regarding the accuracy of any information contained herein. Please review our Privacy Policy, Disclaimer and Terms of Use & Conditions for more information. 

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Willow Risk Monitor – December 2020

The Willow Risk Monitor July 2020
Willow Risk Monitor December 2020

Welcome to the December 2020 overview edition of the Willow Risk Monitor, where we share our analysis of the level of risk in the current market across a variety of metrics. We also explain our thinking on how we look at and assess overall market risk, and we will often highlight what the data shows compared to what you might be hearing in the news.

At Willow, risk management is one of our key influencers in creating portfolio strategies for our clients. We hope this gives a peek into our investment management window.

Consumer Health (proprietary algorithm)
consumer health for dec 2020

Again, overall, the metrics measuring consumer health continue to improve. What the above chart does not show is the reality for lower wage earners as they have a much lower impact on the data being collected to measure consumer health (home buying/building, retail sales, consumer credit, and confidence surveys tend to under represent lower wage earners).

Risk Assessment: Medium/Low

Manufacturing Health (proprietary algorithm)
manufacturing health dec 2020
how we look at manufacturing

Removing February and March from this chart and you wouldn’t know the world fell into a health crisis that shook supply chains and is still wreaking havoc. Data here continues to come in pretty good or at least in line with the past decades average. 

Risk Assessment: Medium/Low

Market Volatility (proprietary algorithm)
volatility dec 2020

Volatility has come down considerably from its peak earlier in the year. While the trend is positive, the velocity, or rate of change, has slowed significantly. Markets are pricing in volatility risk higher than at the start of the year but in relative terms not by that much.

Risk Assessment: Medium/Low

Credit Default Swaps
credit default swaps dec 2020
how we look at CDS

Not much has changed here since last month. CDS spreads, the cost of credit protection, have had a bumpy ride but spreads have mainly returned to pre-COVID levels. Credit protection isn’t cheap but it isn’t expensive either.

Risk Assessment: Low

Bond Spreads
bond spreads dec 2020
how we look at bonds

Overall bond spreads have continued to tighten in aggregate signaling lower perceived risk in the debt markets. Worth noting is the highest tier of credit we monitor (AAA) and the much riskier BBB tier have both basically flatlined for the past month.

Risk Assessment: Low

As always, be well and please feel free to reach out with any questions, comments or concerns.

Best regards,

The Willow Team
+1 413 236 2980

ADCM, LLC dba Willow does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed.  Neither the information nor any opinion expressed herein constitutes an offer or a solicitation of an offer to buy or sell securities.