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Citigroup Sees ‘Death Bells’ for Commodities Supercycle in 2013

Citigroup Sees ‘Death Bells’ for Commodities Supercycle in 2013 | investorMetrix | Scoop.it

The commodities supercycle is probably ending this year as China’s economic growth slows and the nation focuses less on infrastructure and urbanization, Citigroup Inc. said.

This year will probably signal “death bells” for the supercycle, or a longer-than-average period of rising prices, Citigroup said in a report dated yesterday, reiterating similar calls made last month and in 2011. The Standard & Poor’s GSCI gauge of 24 raw materials is down 2.1 percent this year, after an almost fourfold advance since the end of 2001.

Lisa Tamayo's insight:

The singular focus of the commodities market is fascinating.  Prices are pushed up and down by hedging, shorting, and speculation.  They appear to have really nothing to do with supply and demand.  I wonder what would happen to commodities if the externalities were included in pricing?

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Climate Change Is Happening?? So What?

Climate Change Is Happening?? So What? | investorMetrix | Scoop.it

Seven in 10 U.S. citizens believe climate change is real and happening now. Yet most have never even contacted a government official about the issue, let alone volunteered with an environmental organisation or taken other action.

These findings are part of an exploration of Climate Change in the American Mind issued by the Yale Project on Climate Change Communication.

Lisa Tamayo's insight:

In other words... we still have a whole lot of work to do...

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Call It What You Like — New Investing Approach Gains Followers

Call It What You Like — New Investing Approach Gains Followers | investorMetrix | Scoop.it
More than 11 percent of investments under U.S. professional management were selected for companies’ financial performance and their social and environmental responsibility in 2012.
Lisa Tamayo's insight:

I thought so...

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Proxy Preview

Proxy Preview | investorMetrix | Scoop.it
Helping Shareholders Vote Their Values
Lisa Tamayo's insight:

In the spirit of "information is power"... the 2013 proxy report documents the concerns of stakeholders.  

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Investors Take On Corporate Spending, Environmental Dangers

Investors Take On Corporate Spending, Environmental Dangers | investorMetrix | Scoop.it
Proxy resolutions suggest investors are fired up about corporate political spending and the environment.
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Top 5 Reasons You Know Another Stock Market Bubble Is Forming - Wall Street Pit

Top 5 Reasons You Know Another Stock Market Bubble Is Forming - Wall Street Pit | investorMetrix | Scoop.it
With rampant unemployment, low jobs growth and an ugly global economy, many are wondering if we are in the midst of a new stock market bubble. Below are the...
Lisa Tamayo's insight:

Well, the number 1 reason seems the most compelling... celebrities have started investing... time to flee!?

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Global Risks 2013 - Eighth Edition

Global Risks 2013 - Eighth Edition | investorMetrix | Scoop.it

The Global Risks Report 2013 analyses 50 global risks in terms of impact, likelihood and interconnections, based on a survey of over 1000 experts from industry, government and academia.

This year’s findings show that the world is more at risk as persistent economic weakness saps our ability to tackle environmental challenges. The report highlights wealth gaps (severe income disparity) followed by unsustainable government debt (chronic fiscal imbalances) as the top two most prevalent global risks. Following a year scarred by extreme weather, from Hurricane Sandy to flooding in China, respondents rated rising greenhouse gas emissions as the third most likely global risk overall. The findings of the survey fed into an analysis of three major risk cases: Testing Economic and Environmental Resilience, Digital Wildfires in a Hyperconnected World and The Dangers of Hubris on Human Health. In a special report on national resilience, the groundwork is laid for a new country resilience rating, which would allow leaders to benchmark their progress. The report also highlights “X Factors” – emerging concerns which warrant more research, including the rogue deployment of geoengineering and brain-altering technologies.

Lisa Tamayo's insight:

Excellent and important reading.

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Governments And Oil Firms Aren't Acting Like Climate Change Is A Problem

Governments And Oil Firms Aren't Acting Like Climate Change Is A Problem | investorMetrix | Scoop.it

MARKETS can misprice risk, as investors in subprime mortgages discovered in 2008. Several recent reports suggest that markets are now overlooking the risk of "unburnable carbon". The share prices of oil, gas and coal companies depend in part on their reserves. The more fossil fuels a firm has underground, the more valuable its shares. But what if some of those reserves can never be dug up and burned?

Lisa Tamayo's insight:

Most interesting article I have read today.  Unburnable carbon in your portfolio?  Hmmm...

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Water Scarcity Risks and Business Implications

Water Scarcity Risks and Business Implications | investorMetrix | Scoop.it
Lisa Tamayo's insight:

The thing to note here is the release of the World Economic Forum's 2013 Global Risk Survey.  Go get it and read it.

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3 reasons investors will care about ESG in 2015

3 reasons investors will care about ESG in 2015 | investorMetrix | Scoop.it
New initiatives rapidly could change the way capital markets -- and, as a result, corporate executives -- value environmental, social and governance issues.
Lisa Tamayo's insight:

Megatrends to keep an eye on from new KPMG report.  Investors...take note!

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For Retailers, Getting Out of Bangladesh Isn't So Easy

For Retailers, Getting Out of Bangladesh Isn't So Easy | investorMetrix | Scoop.it
Wal-Mart, the Gap, and others discuss how to improve working conditions in Bangladesh following two disasters
Lisa Tamayo's insight:

This is a very serious problem for companies AND investors.  As an investor I want to know products are being sourced ethically.  However, I also believe that if I want to create positive change, I need to ensure the folks in Bangladesh can achieve safer, more equitable working conditions.  Simply divesting of a supplier in Bangladesh won't facilitate this change. However if multinational companies work with countries and suppliers in these very poor regions, positive change could occur for everyone.

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Investing in sinners and saints Jim Lowell

Investing in sinners and saints Jim Lowell | investorMetrix | Scoop.it
Is socially responsible or so-called white hat investing better for your conscience than your wallet?
Lisa Tamayo's insight:

I am a great believer in hearing all perspectives.  Mr. Lowell makes an interesting argument here.  

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On Congolese minerals, students urge ‘responsible investing’

Students from Yale, Brown and Dartmouth released a joint statement Wednesday calling for their universities to adopt more responsible investing policies toward companies that use minerals mined in eastern Congo.
Lisa Tamayo's insight:

Let's hope the university endowment folks listen...

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Climate-Change Related Weather Pounds Insurers · Environmental Management & Energy News · Environmental Leader

Climate-Change Related Weather Pounds Insurers · Environmental Management & Energy News · Environmental Leader | investorMetrix | Scoop.it
The US insurance industry expects climate-change related storms and weather occurrences to worsen — but isn’t doing much to combat global warming, the New York Times re...
Lisa Tamayo's insight:

We still have a whole lot of work to do, part 2... What will it take to get the insurance industry to become advocates for change?  Hopefully not more multi-billion dollar catastrophe payouts.

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Responsible investor wins consistent alpha

Responsible investor wins consistent alpha | investorMetrix | Scoop.it
The Lonsec/Money Management Fund Manager of the Year Award for responsible investment has gone to Perpetual’s Wholesale Ethical SRI Fund.
Lisa Tamayo's insight:

This group has enjoyed a 35.9% return over the last 12 months using a combination of deep research and analytical methods and layering ethical screens on top.  Wow!  Great work and great promise for others!

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Fracking threatens to escalate the West's water wars

Fracking threatens to escalate the West's water wars | investorMetrix | Scoop.it
Nearly half of the country's fracking wells are located in water-stressed regions, so we might be seeing some ugly fights over water in the West.
Lisa Tamayo's insight:

There is always an impact when a natural resource is extracted.  In this case we trade water for natural gas in drought stressed regions in Texas and Colorado.  There is no easy answer here, but I truly believe that the more we know, the better decisions we will make.

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H&M: can fast fashion and sustainability ever really mix?

H&M: can fast fashion and sustainability ever really mix? | investorMetrix | Scoop.it

Happy shoppers: men and women heading to the high street and returning laden with bags of newly bought goodies. That is the image that both economic policy makers and retailers would love to see. A return to the good times.

Fast fashion

Few sectors are more emblematic of today's consumer-driven growth model than the fashion industry. With each new season comes a brand new range of must haves. This "out-with-the-old-and-in-with-the-new" seesaw leaves us more hip and retailers more profitable, but it's costing the planet dear. Take jeans. The cotton that goes into a single pair of Levi's® 501®s, for example, requires almost 1,500 litres of water to grow. Add in millions of T-shirts, jumpers, socks, pairs of underwear … you do the maths.

Lisa Tamayo's insight:

I agree with the author that recycling is great, but producing 550 million items of clothing a year just isn't sustainable.  Another case of greenwashing for a society more focused on cute fashion than the future of the planet.

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Bill Powers: Pickens and Stansberry Wrong, Shale Gas Production to Fall

Bill Powers: Pickens and Stansberry Wrong, Shale Gas Production to Fall | investorMetrix | Scoop.it
Energy pundits sing natural gas' praises, but Bill Powers, author of Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth, isn't buying it.
Lisa Tamayo's insight:

Only 5-7 years for this natural gas boom?  That's a whole lot less than the 100 year boom we have been hearing about.  I am relieved to finally hear experts discuss the possiblity that natural gas isn't going to save us.  Perhaps we should continue to invest in alternative energy after all!

 

Also, Powers talks about "proven undeveloped" reserves that companies list on their books, but cannot always exploit.  A deceptive form of sleight of hand on the part of oil companies.  Excellent reading...

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Learn To Love Commodities When They're Hated

Learn To Love Commodities When They're Hated | investorMetrix | Scoop.it
Commodities, energy and materials are the most unappreciated areas of the market these days. Here's why it may make sense to invest in these areas now.
Lisa Tamayo's insight:

I am posting this because of the charts included in the story.  Very compelling look at the various asset classes and trends in the levels of investment.  Investments in Energy are at the very bottom in "underowned" followed closely by investments in Materials.  The author indicates that Energy and Materials being so underowned means it could be the perfect time to buy positions in both.  I see this as a telling snapshot about volatility and resource issues in energy and less demand for materials due to ongoing global recessions.  

 

What will you take away from this analysis that will impact your portfolio?

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All S&P 500 Companies But One Disclose Some Sustainability Activity

All S&P 500 Companies But One Disclose Some Sustainability Activity | investorMetrix | Scoop.it

Almost all of the top 500 publicly traded U.S. companies annually disclose information on their sustainability performance, but very few combine sustainability and financial performance data, according to a report released April 29 by the Investor Responsibility Research Center Institute (IRRCI) and the Sustainable Investments Institute (SI2).

Lisa Tamayo's insight:

Moving in the right direction.  The Sustainable Investments Institute (SI2) and the  Investor Responsiblity Research Center (IRRCi) partnered for this very interesting and thoughtful research.  A tremendous read!

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Long-Term Investors Reduce Volatility, Improve Corporate Responsibility

Long-Term Investors Reduce Volatility, Improve Corporate Responsibility | investorMetrix | Scoop.it

 It's the million-dollar question: Does "responsible investing" benefit one's bottom line as well as one's conscious? 

 

Three researchers out of the Virginia Polytechnic Institute (Virginia Tech) took on this question for public equities, and found the answer is yes.

Lisa Tamayo's insight:

This article posted on asset international's Chief Investment Officer.  I like to see institutional investors taking note of responsible investing concepts.

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Crowdfunding For Food: CircleUp Raises $7.5M From Union Square Ventures

Crowdfunding For Food: CircleUp Raises $7.5M From Union Square Ventures | investorMetrix | Scoop.it
CircleUp, a fundraising platform for consumer product companies, has raised $7.5 million in a Series A funding round led by Union Square Ventures and joined by Google Ventures, Maveron and Clayton Christensen’s Rose Park Advisors.
Lisa Tamayo's insight:

The future of investing... CircleUp.

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Does sustainability matter to investors? Depends who you ask - Fortune Tech

Does sustainability matter to investors? Depends who you ask - Fortune Tech | investorMetrix | Scoop.it
Do investors care about a company's environmental risk? Three high-profile investors debated it at Fortune's Brainstorm Green conference.
Lisa Tamayo's insight:

Sustainability is irrelevant.  Efficient management of all the resources required to make a company successful is the important factor here.  I heartily welcome the day when we stop calling it "sustainability" and simply "the way we do things here". 

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Cleantech investing quietly re-emerging as smaller, more rational and capital-light

Cleantech investing quietly re-emerging as smaller, more rational and capital-light | investorMetrix | Scoop.it
We’ve all heard that following weak returns, venture capital cleantech investing has retrenched. So what’s next? A style of investing that is a whole lot more rational, return-driven, shorter timelines and capital lite.
Lisa Tamayo's insight:

Invest in smaller, more efficient projects that can deliver a faster return.  Makes perfect sense to me.

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The Philadelphia Eagles Stadium Literally Powers the City

The Philadelphia Eagles Stadium Literally Powers the City | investorMetrix | Scoop.it
Lincoln Financial (NYSE: LNC) Field has been home to some pretty incredible football action in the first decade since its opening. Take, 4th and 26, for instance.
But as of this...
Lisa Tamayo's insight:

This is just too cool not to share.

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