Climate change, economy, environment, interest rates, retirement, risk management, SRI

Climate Change impacting Economic Growth

In the past decade the global economy has struggled to produce sustained economic growth. While the financial crisis of 2007-2009 and the Great Recession left a lasting impact on companies and decision-makers, the structural changes to the economy since then have been substantial.

Companies have adapted by changing the employment structure of how they operate. Many companies, to cut costs, have changed many jobs from w2 positions to contractor or out sourced positions. This has allowed large companies to pay less in terms of benefits to their workers; benefits such as health insurance, disability insurance, life insurance and retirement savings.

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Climate change, economy, environment, interest rates, retirement, risk management

Rising global temperatures will hurt global GDP

A study released by the science journal Nature makes the connection between the rise of global temperatures and the negative impact this has on GDP around the world. In the study, titled “Global non-linear effect of temperature on economic production”, researchers found that “fundamental productive elements of modern economies, such as workers and crops, exhibit highly non-linear responses to local temperature even in wealthy countries.” Meaning as temperatures rise, the effect is much greater and accelerates in ways that are potentially disastrous. (1)

One of the lead authors, Marshall Burke of Stanford’s Department of Earth System Science, calls their study “the first evidence that economic activity in all regions is coupled to the global climate.”

The study continues, “If future adaptation mimics past adaptation, unmitigated warming is expected to reshape the global economy by reducing average global incomes roughly 23% by 2100 and widening global income inequality.”

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economy, entrepreneurship, new economy, risk management

A Guidebook for the Anthropocene Era

I have written before the current age has been called the Anthropogenic Era, the human era, because mankind is reshaping the geology and environment of the world. The economic system is adjusting to these changes taking place. The economic system set up 100 years ago does not behave or react the same way because the environment is different in which it operates.

The internet is revolutionizing the economy.

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Climate change, economy, environment, retirement

Climate Change Affecting Crops in 2019

Thanks to endless rain and historic flooding that has stretched on for months, many farmers have not been able to plant crops at all, and a lot of the crops that have actually been planted are deeply struggling. What this means is that U.S. agricultural production has the possibility of being way, way down this year.

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economy, income, interest rates, retirement, risk management

“Data Dependent” Fed Changes Course and Markets React

In the Fall of 2018, equity markets sold off.

What was the cause?

Widespread view among economists was an expectation of slowing economic growth in 2019 and a Federal Reserve led by Chairman Jay Powell that was expected to continue to raise rates three more times in 2019.

As anxiety and stress built up in November and December, markets dropped. Between October 3 and October 29 the SP500 fell 9.7%. Between October 29 and December 7 the market bounced around rising 6.5% only to give it back and to fall .3%. However, in the weeks before Christmas, December 7 to December 24 the market fell another 10.7%. Showing the rapidness of the decline, on Christmas Eve the SP500 fell 2.6%.

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economy, ESG, Socially Responsible Investing

In Memoriam, Alan Krueger

Anyone who knows me, knows I don’t easily shed tears. But I did on Monday March 18th, 2019. For over an hour I wept.

On this day it was announced that Alan Krueger, beloved Princeton economist, had passed away over the weekend. (1)

Michael Mckee of Bloomberg said “He was one of the nicest people in economics, always willing to sit down and explain concepts to you, to talk with you, it’s a real shock…” Peter Coy continued, “If he were just a nice guy it would be one thing, but he was also a deep scholar…” McKee explained, “There are a lot of economists doing important work, but Krueger really had an enormous impact on public policy outcomes.” All concurred, “It’s a tragedy.” (3)

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economy, income, interest rates, retirement, risk management

Market Risks and the Wall of Worry

 

“Current Bull Market Continues To Climb A ‘Wall of Worry’” (1)

 

The “wall of worry” is one of the phrases frequently used to illustrate the resistance or fear of investors to invest in a stock market that had earlier gone down.  Since the Great Recession of 2008 and the financial crisis many investors have worried about the possibility of another financial crisis.

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economy, entrepreneurship, key man insurance, life insurance, new economy, protection

Protecting your business, and your legacy

Most business owners, CEOs and executives are laser focused on driving their business or enterprise towards success. They are responsible for preserving and expanding sales and revenue. They are responsible for hiring and firing. They are responsible to investors and stakeholders to manage risk and ensure success. They handle client relationships, research and development, marketing and IT… As leaders they wear many hats and carry a lot of weight on their shoulders.

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Climate change, economy, environment, Socially Responsible Investing, SRI

Climate Change, Rising Temperatures and Food Security

Increasing temperatures globally will have an impact on the economy, and especially the supply of food.

 

“Scientists have high confidence that global temperatures will continue to rise for decades to come, largely due to greenhouse gases produced by human activities. The Intergovernmental Panel on Climate Change (IPCC), which includes more than 1,300 scientists from the United States and other countries, forecasts a temperature rise of 2.5 to 10 degrees Fahrenheit over the next century.” (1)

 

Temperature is a primary factor affecting the rate of plant development. Warmer temperatures expected with climate change and the potential for more extreme temperature events will impact plant productivity. (2)

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economy, retirement

Tariffs, Trade Wars, and Risk

I have had several clients ask about what impact the proposed trade tariffs might have on their retirement plans.

 

On June 19th, 2018 the S&P 500 sank the most in three weeks with industrial companies getting hit hardest after President Donald Trump threatened tariffs on another $200 billion of Chinese goods, and the Asian nation pledged retaliation. (1)

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