The $30 Trillion Mega-trend to Watch as Markets Bounce Back
FN Media Group Presents Oilprice.com Market Commentary
LONDON, May 19, 2020 /PRNewswire/ -- The economy is reopening, stock markets are already bouncing back in a hedge on the future, and we're about to see the biggest shift in capital in years. It's a big money shift away from tradition and towards a future in which retail investors - and major hedge funds - demand that their investments go into companies that are sustainable. Mentioned in today's commentary includes: Apple Inc. (NASDAQ: AAPL), NextEra Energy, Inc. (NYSE: NEE), TOTAL S.A. (NYSE: TOT), General Motors Company (NYSE: GM), Tesla, Inc. (NASDAQ: TSLA).
It's not politics or ideology. It's not right or left. It's pure free-market sentiment dictating what happens after the lesson the market has learned before and during a global pandemic:
Welcome to the $30-trillon-plus mega trend of sustainable investing, otherwise known as ESG (environmental, social and governance) Investing. And welcome to one of the new companies positioned to give big capital exactly what it's looking for: Canada's Facedrive (FD,FDVRF), the competitor to Uber that's working to turn ride-sharing into a sustainable, more carbon-neutral industry.
Even better, while Uber has been burning cash like crazy for a decade and still isn't profitable, Facedrive has an entire ecosystem of revenue generation setups that treat ride-sharing as much more than a ride: It's a high-tech business segment that has many ways to generate revenue while the wheels are rolling.
Where Big Money Will Go To Multiply
Even before COVID-19, Big Money was shrugging off tradition, increasingly in favor of ESG investing, which hit $30 trillion even before the pandemic.
What the pandemic did was bring the enormous potential threat of climate change into clearer focus. The new investment thesis rationale is this: If we weren't 100% sold on the threat of climate change, we also weren't 100% sold on a global pandemic after so many previous scares that turned out to be overblown.
The new investment thesis ties into risk mitigation and reputation. Companies that can't withstand a crisis aren't good investments. Likewise, companies that will be continually called out in social media for contributing to crises are also taking on too much risk in relation to future returns.