AI, diversity, economy, entrepreneurship, new economy, risk management

Diversity Matters… Especially In Business

Even before the economic crisis wrought by the Coronavirus, the economy is changing at a rapid pace. Companies in many sectors that have been pillars of the economy have fallen on hard times. Companies that were leaders in industrial America have seen their market cap fall by 2/3rds in the past year. Leaders in retail have closed hundreds of stores and laid off thousands of people. Even technology companies that started off strong in the past 10 years have suffered setbacks in the past year due to corporate governance issues.

As technology advances, the challenge for businesses to stay competitive becomes amplified. In the last 5 years, advances in robotics and AI (Artificial Intelligence) have significantly added to the bottom line of companies. That pace of change seems to be accelerating. But even as technology expands its importance, what will human workforce need to look like.

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Climate change, economy, environment, ESG, risk management, Socially Responsible Investing, SRI

Energy, Economic Trends, and Effecting Change: A Review of the Economic Superorganism

In his book “The Economic Superorganism”, Carey King outlines a novel system to organize economic decision making and to evaluate outcomes in a Climate Changed world. People are becoming increasingly aware of the consequences of climate change. In October of 2018 the IPCC (International Panel on Climate Change) stated we have 12 years to halt the growth of CO2 if we hope to avoid the worst possible consequences of global warming. (1) The fossil fuel industry is the primary driver of CO2 growth.

In the February 2022 update of the IPCC report stated, “This report is a dire warning about the consequences of inaction,” said Hoesung Lee, Chair of the IPCC. “It shows that climate change is a grave and mounting threat to our wellbeing and a healthy planet. Our actions today will shape how people adapt and nature responds to increasing climate risks.” (4)

“The world faces unavoidable multiple climate hazards over the next two decades with global warming of 1.5°C (2.7°F). Even temporarily exceeding this warming level will result in additional severe impacts, some of which will be irreversible. People and ecosystems least able to cope are being hardest hit, said scientists.”

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health, life insurance, protection, risk management

Diet, health, and the financial impact on life insurance

The purpose of life insurance is to manage risk. Individuals and families need protection in the event a primary bread winner passes away.

Several factors drive what life insurance costs for an individual. Women tend to live longer, so their cost for life insurance is lower than it is for men. The healthier a person is, the less expensive it is for them to obtain life insurance. People who smoke pay significantly more for life insurance.

Each person’s health situation is unique. Part of the process of obtaining life insurance is to collect medical samples for testing. The underwriter reviews records from your doctors over the past 5 years. They also examine driving records.

Once all of the information is collected the underwriter evaluates the data at hand and assigns the insured person a health rating. The better the rating, the lower the premium you pay. 

So how much of an impact do health issues have on a person’s ability to afford life insurance? 

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economy, income, interest rates, retirement, risk management

Recession Risks Rise: a survey

Over the past few months several institutional investors have offered insights on how the markets were evolving given a laundry list of changing conditions, including rising inflation, a change in Fed policy to raise rates, energy prices, and slowing world growth…

In January 2022 Howard Marks of Oaktree Capital was interviewed on Bloomberg by Erik Schatzker. Marks gave his view of how market condition were changing at the start of 2022 and how investors could adjust. Schatzker asked Marks, “are you worried about inflation?” (1)

“I am worried. This is excessive. Everyone wants a little inflation. For years central banks have been trying to generate inflation and haven’t been able to do so. Excessive inflation is not desirable.

Higher inflation means higher interest rates and higher rates mean lower asset prices, and that’s what’s going on right now.”

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