Is everyman really an island?
A funny thing happened on the way to restoration
following the pandemic. Economists and the
general public conflated plump profits and rising sales with the notion that
“recovery” was being felt by everyone.
Never mind the “average guy” who really could care less about output,
yield, or profits…..those people were just trying to survive until the next day
because of rising food costs, gasoline prices, and supply shortages. While no one was complaining about portfolio
increases during the rebound, there were enough stragglers left behind that we
should take notice.
And nowhere does the wealth gap seem
more excessive than in matters of life and death, such as healthcare, food and
water, and security.
Large segments of the global
population have empty larders, either because of political strife, war, or
climate. The painstaking process of
finding solutions for those disaffected is a complex web of geopolitical will
and moral courage.
As with anything regarding finance,
the issues are usually defined by expenses (cost) and profitability. The
other part of the equation is simply a matter of worthy conscience and
motivation. Thus, if the answer is known
but the cost is prohibitive then there is very little motivation to waste time
or money on behalf of your stakeholders.
Eliminating tardiness to the finish
line is the hallmark of people who get things done.
The problem is that not all nations
have equal access to the resources necessary to procure technology and
brainpower to create these solutions.
Certainly, Western nations have those funds, have the infrastructure,
have the scientists and economists. In a
world where the vastly underdeveloped peoples are hungry, thirsty, and
impoverished their voices unfortunately are not heard, or ignored altogether,
by the rest of the world.
Wall Street has been very late in
acknowledging its capacity and responsibility for innovation simply to “do
good”. Their thought process has
been to try and commoditize product offerings in fancy packages with glossy
commercials to drive profit and return to the investor, and themselves….not
because of altruism or what’s good for the planet. Yet, it is possible to do both …to enlarge
the value of portfolios while being true to a set of logical, moral values. Of note, I and my teams have been engaged in
socially responsible portfolio construction and management for nearly four
decades. Whether one chooses to chase
the most “famous” stocks on the exchanges or to do something which results in a
profit and a benefit is an
individual choice, but also speaks volumes about how the Street sells its own
mission statement to the general public.
Good stewardship of the planet,
combined with profitability and innovation, is finally starting to resound with
the public. After all, Covid 19 was not
a rich man’s affliction, nor a poor man’s.
It was not a “Western” virus nor an Eastern. It was not a young person’s disease, nor a
geriatric one. There is no question that
our 2 year experience with a global pandemic, a life and death crisis, informed
many of us to our human value, our mortality, and perhaps a greater purpose.
Going forward, it is vital that all
the political backwash and the callous invective not sway us from getting the
job done…..to provide for the future and the welfare of the planet upon which
we all travel. Recklessness and brinksmanship inspire
inertia and lack of willpower and only heighten uncertainties about our money,
our future, and our empathy towards others.
The folly in Congress right now about raising the debt ceiling is an
example of losing the forest for the trees, and deeply affects our psyches and
our pocketbooks. It is not certain
whether the hangover we developed during our Covid-induced isolation regarding
an “it’s all about me” attitude will persist.
But there is no doubt that the dichotomy between what’s right and what is actually happening is as large as it’s ever been.
With purposeful intent it is possible
to accomplish two aims at once.
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