How
it might look....
The markets serenely started last
week to look something like the post-pandemic recovery we have all been waiting
for, as a secular rebalancing took shape, looking nothing like the era which
preceded it. Instead, investment rewards
appear more so to be deriving from private and public partnerships that focus
upon streamlining solutions in healthcare and other segments which deal in the
welfare of the public at large. In our
view, these deliberate changes in the investment tapestry will be significant.
There is no deviation, however, from
traditional definitions which underpin an effective economic marketplace:
strong earnings, high yield, and long term planning. Simply trading on “value stocks” is not
sufficient to tackle the problems of our times.
The globe is facing undeniable
challenges, including but not limited to hunger, poverty, social and economic injustice,
an aging population, depletion of natural resources, and a scarcity of potable
water. The real issue, though, is that we have a massive inefficiency in
delivering these scarce resources to regions that need them the most.
The price tag of rebuilding that collective
infrastructure will be massive. But, as
many have pointed out, the cost of inaction today, of failing to confront the
social quandaries of our time, will make the expense much later even more
prohibitive. Right here in the US the
devastation upon infrastructure wrought by last week's winter storms is
incalculable. It only makes sense that
our best efforts be manifest today to confront the moral, political, and
investment issues that face us tomorrow.
What if the budget were
unlimited...hypothetically? Would that
change the calculus for getting to work?
...not
a drop to drink
Water...for example....covers nearly
two-thirds the expanse of our planet.
Yet, a similar percentage of the population suffers from a lack of dependable
access to this precious commodity. The
situation will not “self correct”, nor improve without capital initiatives. The crisis derives from many known sources,
such as overpopulation, climate change, population migration, and
industrialization. This missive is not
comprehensive enough in time nor expertise to elaborate upon all the
permutations of and possible solutions to the issue. But we do know that money, itself, is not the
only pathway to improvement. When
tackling comprehensive problems there are two measuring sticks: the systems we put
in place to deal with the structural problem; and the final solution as measured
by the number of people helped by those efforts. Each can only be as good as the other.
During the past several decades
ArlingtonEconometrics has blended quantitative analysis with economic
fundamentals, composing portfolios which epitomize companies engaged to the
global water crisis. By superimposing
our criteria for earnings acceleration,
price performance, algorithmic trend analysis, and long term sustainability,
we have vigilantly crafted a complex of
equities that echo worldwide projects in desalinization, hydroelectric power,
purification, transportation systems, and other components of delivering
potable water to the underserved.
The capital markets are, and always
have been the engine of our future. Many
institutions and high net worth individuals have long recognized that
integrating silo-specific, highly targeted, sector oriented investing,
particularly in areas of socially responsible subject matter, can be extremely
effective in identifying probabilities of capital gains that complement the
overall framework of balancing risk within their portfolio. Money efficiently applied to these specific
needs always moves the needle closer to achieving basic human rights and
strengthening human values, morality, and hope.
These things, and others, may seem like a lot of money being cavalierly
spent. But when an investment produces
returns for shareholders as well as providing for the common good the expense
is worth it. The biggest commitment is
the mental one. Is there the courage and
self-belief that making a difference for the future of the planet is the right
thing to do....
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