The broad-based US index S&P500 is up 60% over the last 10 years. Bearing in mind that dividends are not included and that inflation has been low, you might think a passive investor in US equities would be somewhat relieved. Especially when compared to some other markets: the UK FTSE100 and the Australian ASX200 are both at virtually the same level as they were 10 years ago.
I had a good laugh this week at the story that was picked up by an investment management industry newsletter. An investment management company calling itself Australian Ethical reportedly said it would decarbonise its portfolio by 2050. Citing the urgent need to do something to prevent catastrophic climate change, the team at Australian Ethical is really getting into gear. Urgently. When I have something urgent to do, my timetable for getting it done often extends into the 2060s, so 2050 clearly reflects the degree of urgency this team really has.
Put aside for a moment that climate alarmists have been warning for at least 15 years that unless action was taken in the next 5 years, it would be too late. Continue reading
Australian Actuary 